02-06 North American Emerald Mine File Pt. 27

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WNW
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, P.G., P.E. Michael F. Easley, Governor
Director and State Geologist William G. Ross Jr., Secretary
November 29, 2007
Certified Mail
Return Receipt Reauested
7006 2760 09 9283 8582
Mr. David Jarrell
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Permit No. 02-06
North American Emerald Mine
Alexander County
Yadkin River Basin
Dear Mr. Jarrell:
Your recent request to have the above referenced mining permit modified has been
approved. The modification is to increase the affected acreage at this site to 22.96 acres as
indicated on the mine maps received by the Land Quality Section on July 5, 2007. The
modification includes expansion of the overburden storage areas and rock storage areas, and
the installation and maintenance of all associated erosion and sediment control measures. A
copy of the modified permit is enclosed.
The conditions in the modified permit were based primarily upon the initial application.
Modifications were made as indicated by the modification request and as required to insure
compliance with The Mining Act of 1971. The expiration date, mine name and permit number
shall remain the same as before the modification. I would like to draw your particular attention
to the following conditions where minor additions or changes were made: Operating Condition
Nos. 4C, 5 and 15.
The issuance of a mining permit and/or any modification to it does not supersede local
zoning regulations. The responsibility of compliance with any applicable zoning regulations
lies with you.
As a reminder, your permitted acreage at this site is 94.5 acres and the amount of land
you are approved to disturb is 22.96 acres.
As we have received the new $70,191.08 Assignment of Savings Account (ASA) which
includes the existing ASA No. 401930334 and a new ASA No.402026948 issued by Peoples
Bank, I am returning the previously held $59,000.00 Assignment of Savings Account to you for
your disposal. Please note that the existing $59,000.00 ASA No 401930334 has been
transferred into and is included in the new $70,191.08 ASA.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 -919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity 1 Affirmative Action Employer —50°% Recycled 110% Post consumer Paper

Certified Mail
Mr. Jarrell
Page Two
Please review the modified permit and contact Ms. Judy Wehner, Assistant Mining
Specialist, at [phone] should you have any questions concerning this matter.
Sincerely,
Floyd R. Williams, PG, CPG, CPM
State Mining Specialist
Land Quality Section
FRW/jw
Enclosures
cc: Mr. Zahid Khan
Ms. Shannon Deaton - WRC, w/permit
Mr. Bradley Bennett - DWQ, w/permit
Mr. William Gerringer-Mine and Quarry Bureau, w/o enclosures

DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
LAND QUALITY SECTION
PERMIT
for the operation of a mining activity
In accordance with the provisions of G.S. 74-46 through 68, 'The Mining
Act of 1971," Mining Permit Rule 15A NCAC 5 B, and other applicable
laws, rules and regulations
Permission is hereby granted to:
North American Emerald Mines, Inc.
North American Emerald Mine
Alexander County - Permit No. 02-06
for the operation of a
Gemstone Mine
which shall provide that the usefulness, productivity and scenic values of
all lands and waters affected by this mining operation will receive the
greatest practical degree of protection and restoration.
MINING PERMIT EXPIRATION DATE: March 15, 2010

Page 2
In accordance with the application for this mining permit, which is hereby approved by the
Department of Environment and Natural Resources hereinafter referred to as the Department,
and in conformity with the approved Reclamation Plan attached to and incorporated as part of
this permit, provisions must be made for the protection of the surrounding environment and for
reclamation of the land and water affected by the permitted mining operation. This permit is
expressly conditioned upon compliance with all the requirements of the approved Reclamation
Plan. However, completed performance of the approved Reclamation Plan is a separable
obligation, secured by the bond or other security on file with the Department, and may survive
the expiration, revocation or suspension of this permit.
This permit is not transferable by the permittee with the following exception: If another
operator succeeds to the interest of the permittee in the permitted mining operation, by virtue
of a sale, lease, assignment or otherwise, the Department may release the permittee from the
duties imposed upon him by the conditions of his permit and by the Mining Act with reference
to the permitted operation, and transfer the permit to the successor operator, provided that
both operators have complied with the requirements of the Mining Act and that the successor
operator agrees to assume the duties of the permittee with reference to reclamation of the
affected land and posts a suitable bond or other security.
In the event that the Department determines that the permittee or permittee's successor is not
complying with the Reclamation Plan or other terms and conditions of this permit, or is failing
to achieve the purposes and requirements of the Mining Act, the Department may give the
operator written notice of its intent to modify, revoke or suspend the permit, or its intent to
modify the Reclamation Plan as incorporated in the permit. The operator shall have right to a
hearing at a designated time and place on any proposed modification, revocation or
suspension by the Department. Alternatively and in addition to the above, the Department
may institute other enforcement procedures authorized by law.
Definitions
Wherever used or referred to in this permit, unless the context clearly indicates otherwise,
terms shall have the same meaning as supplied by the Mining Act, N.C.G.S. 74-49.
Modifications
March 13, 2002: This permit has been modified to allow blasting activities at this site.
October 27, 2004: This permit has been modified to increase the permitted acreage to 94.6
acres and the affected acreage at this site to 15.1 acres. The modification includes the
addition of a haul road and overburden disposal area as indicated on the mine maps received
by the Land Quality Section on September 23, 2002.
March 4, 2005: This permit has been modified to clarify the request to operate a rock crusher
at the site in order to crush rock into gravel. The modification includes contingencies to the
approval that include any necessary approvals from the Division of Air Quality to operate said
equipment be obtained and no off -site generated rock material shall be brought on the site
without prior approval from the Department.

Page 3
October 26, 2005: This permit has been modified to amend the Blasting Conditions of Mining
Permit No. 02-06. The modification includes limit ground vibration to twenty-five per cent of
Operating Condition No. 8A and require pre -blast warning signal to two property owners.
November 29, 2007: This permit has been modified to increase the affected acreage at this
site to 22.96 acres as indicated on the mine maps received by the Land Quality Section on
July 5, 2007. The modification includes expansion of the overburden storage areas and rock
storage areas and in the installation and maintenance of all associated erosion and sediment
control measures.
Expiration Date
This permit shall be effective from the date of its issuance until March 15, 2010.
Conditions
This Permit shall be subject to the provisions of the Mining Act, N.C.G.S. 74-46, et. seq., and
to the following conditions and limitations:
OPERATING CONDITIONS:
Wastewater and Quarry Dewatering
A. Any wastewater processing or mine dewatering shall be in accordance with the
permitting requirements and rules promulgated by the N.C. Environmental
Management Commission.
B. Any storm water runoff from the affected areas at the site shall be in accordance
with any applicable permit requirements and regulations promulgated by the
Environmental Protection Agency and enforced by the N.C. Environmental
Management Commission. It shall be the permittee's responsibility to contact
the Water Quality Section, Division of Water Quality, to secure any necessary
storm water permits or other approval documents.
2. Air Quality and Dust Control
A. Any mining related process producing air contaminant emissions including
fugitive dust shall be subject to the requirements and rules promulgated by the
N.C. Environmental Management Commission and enforced by the Division of
Air Quality.
B. During processing operation, water trucks or other means that may be necessary
shall be utilized to prevent dust from leaving the permitted area.

Page 4
3. Buffer Zones
A. Any mining activity affecting waters of the State, waters of the U. S., or wetlands
shall be in accordance with the requirements and regulations promulgated and
enforced by the N. C. Environmental Management Commission.
B. Sufficient buffer (minimum 100 foot undisturbed) shall be maintained between
any affected land and any adjoining waterway or wetland to prevent
sedimentation of that waterway or wetland from erosion of the affected land and
to preserve the integrity of the natural watercourse or wetland.
4. Erosion and Sediment Control
A. Adequate mechanical barriers including, but not limited to diversions, earthen
dikes, check dams, sediment retarding structures, rip rap pits, or ditches shall be
provided in the initial stages of any land disturbance and maintained to prevent
sediment from discharging onto adjacent surface areas or into any lake, wetland
or natural watercourse in proximity to the affected land.
B. All mining activities shall be conducted as indicated by the Erosion and
sedimentation Control Plan last revised December 22, 1999 and the
supplemental Erosion and Sedimentation Control Narrative and design
calculations.
C. Mining activities associated with the expansion of the overburden storage areas
and rock storage areas, shall be conducted as indicated on the mine maps
received by the Land Quality Section on July 5, 2007 and the supplemental
information received by the Land Quality Section on July 17, 2006, November 7,
2006, February 26, 2007 and July 5, 2007.
D. Mining activities associated with the addition of the haul road and overburden
disposal area, including the installation and maintenance of all associated
erosion and sediment control measures, shall be conducted as indicated on the
mine maps received by the Land Quality Section on September 23, 2002.
E. Adequate erosion and sedimentation control measures must be utilized along
any land disturbing activities associated with expanding the width of the old road,
located adjacent to the Betty Wooten property, toward the inside of the permit
boundary, and also in the area noted as turn around area near the creek, and
any other areas associated with this November 29, 2007 modification approval.
A ground cover sufficient to restrain erosion must be provided within 30 days of
completion of any phase of grading on exposed areas noted and exposed areas
associated with the construction of the safety berm.
F. All drainage from exposed areas must be diverted to existing and proposed
sediment control measures and devices to prevent sediment - laden runoff from
leaving the site.

Page 5
5. Marking Boundaries
All affected area boundaries (22.96 acres) shall be permanently marked at the site on
100 foot intervals unless the line of sight allows for larger spacing intervals.
6. ` Graded Slopes and Fills
The angle for graded slopes and fills shall be no greater than the angle which can be
retained by vegetative cover or other adequate erosion control measure, structure, or
device. In any event, exposed slopes or any excavated channels, the erosion of which
may cause off -site damage because of siltation, shall be planted or otherwise provided
with groundcover, devices or structures sufficient to restrain such erosion.
7. Surface Drainage
The affected land shall be graded so as to prevent collection of pools of water that are,
or likely to become, noxious or foul. Necessary structures such as drainage ditches or
conduits shall be constructed or installed when required to prevent such conditions.
8. Blasting
The operator shall monitor each blast with a seismograph located at a distance
no farther than the closest off site regularly occupied structure not owned or
leased by the operator. A seismographic record including peak particle velocity, air
overpressure, and vibration frequency levels shall be kept for each blast (except as
provided under Sections 8B. and 8D. of this permit). The following blasting conditions
shall be observed by the mine operator to prevent hazard to persons and adjacent
property from surface blasting:
A. Ground Vibration With Monitoring:
In all blasting operations, the maximum peak particle velocity of any component
of ground motion shall not exceed twenty-five per cent of Figure 1 (below) at the
immediate location of any regularly occupied building outside of the permitted
area such as a dwelling house, church, school, or public, commercial or
institutional building.

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Ground Vibration Without Monitoring:
In the event of seismograph malfunction or other condition which prevents
monitoring, blasting shall be conducted in accordance with the following
formulas:
W = (D/DS)2 DS = D
W 112
V = 160(D$)-16
W = Maximum charge weight of explosives per delay period of 8.0 milliseconds
or more (pounds).
D = Distance from the blast site to the nearest inhabited building not owned or
leased by the mine operator (feet).
Ds = Scaled distance factor.
V = Peak Particle Velocity (inches per second).
C. Air blast With Monitoring:
Air blast overpressure resulting from surface blasting shall not exceed 129
decibels linear (dBL) as measured at the immediate location of any regularly
occupied building not owned or leased by the operator outside of the permitted
area such as a dwelling house, church, school, or public, commercial or
institutional building, unless an alternate level based on the sensitivity of the
seismograph microphone as specified below is being used:

E.
Lower Frequency Limit of Max Level,
Measuring System, in Hz in dBL
0.1 Hz or lower -flat response 134 peak
2.0 Hz or lower -flat response 133 peak
6.0 Hz or lower -flat response 129 peak
Air blast Without Monitoring:
In the event of seismograph malfunction or other condition which prevents
monitoring, blasting shall be conducted in accordance with the following
formulas:
To convert U (psi) to P (dBL):
U = 82 (D/W0.33)-1.2
P = 20 x log (U/2.9x10-9)
Confined Air blast/Overpressure (dBL)
for quarry situation:
A=P-35
Page 7
U = Unconfined air overpressure (pounds per square inch).
W = Maximum charge weight of explosives per delay period of 8.0 milliseconds
or more (pounds).
D = Distance from the blast site to the nearest inhabited building not owned or
leased by the mine operator (feet).
P = Unconfined air overpressure (decibels).
A = Air blast or air overpressure for typical quarry situations (decibels).
The air blast/overpressure shall not exceed 129 decibels, for the purposes of this
Section.
Record Keeping:
The operator shall maintain records on each individual blast describing: the total
number of holes; pattern of holes and delay of intervals; depth and size of holes;
type and total pounds of explosives; maximum pounds per delay interval; amount
of stemming and burden for each hole; blast location; distance from blast to
closest offsite regularly occupied structure; and weather conditions at the time of
the blast. Records shall be maintained at the permittee's mine office and copies
shall be provided to the Department upon request.
F. Excessive Ground Vibration/Air blast Reporting:

Page 8
If ground vibration or Air blast limits are exceeded, the operator will immediately
report the event with causes and corrective actions to the Department. Use of
explosives at the blast site that produced the excessive reading shall cease until
corrective actions approved by the Department are taken. However, blasting
may occur in other approved areas within the permitted boundary. Authorization
to blast at the blast site may be granted at the time of the verbal reporting of the
high ground vibration or high air blast reading if the circumstances justify verbal
approval. Failure to report will constitute a permit violation.
G. Flvrock Prevention:
The operator shall take all reasonable precautions to ensure that flyrock is not
thrown beyond areas where the access is temporarily or permanently guarded by
the operator. Failure to take corrective measures to prevent flyrock and
repeated instances of flyrock shall be considered a violation of the Mining Permit.
H. Flvrock Reporting:
Should flyrock occur beyond the permitted and guarded areas, the operator shall
immediately report the incident to the Department. Further use of explosives on
the mine site shall be suspended until the following actions have been taken:
A thorough investigation as to the cause(s) of the incident shall be
conducted.
2. A report detailing the investigation shall be provided to the Department
within 10 days of the incident. The report shall, at a minimum, document
the cause(s) of the incident along with technical and management actions
that will be taken to prevent further incidents. The report shall meet with
the approval of the Department before blasting may resume at the mine
site.
Studies:
The operator shall provide to the Department a copy of the findings of any
seismic studies conducted at the mine site in response to an exceedence of a
level allowed by these blasting conditions. The operator shall make every
reasonable effort to incorporate the studies' recommendations into the
production blasting program.
J. Notice:
The operator shall, when requested by the Department, give 24-hour
advance notice to the Land Quality Section Regional Office prior to any
blast during a period for which notice is requested.

Page 9
2. Warning of mine blasting shall be given 30 minutes prior to blasting so
that the warning will be perceived by the nearest two property owners to
the site of the blasting.
9. Visual Screening
Existing vegetation shall be maintained between the mine and public thoroughfares to
screen the operation from the public. Additional screening methods, such as
constructing earthen berms, shall be employed as deemed appropriate by the
Department.
10. Adiacent Property Buffers
Sufficient buffer (minimum of 50 foot undisturbed) shall be maintained between any
excavation and any mining permit boundary or right-of-way to protect adjacent property.
11. Highwall Barriers
A physical barrier consisting of a fence or earthen berm, etc., shall be maintained
around the perimeter of any highwall.
12. Refuse Disposal
A. No on -site disposal of refuse or other solid waste that is generated outside of the
mining permit area shall be allowed within the boundaries of the mining permit
area unless authorization to conduct said disposal has first been obtained from
both the Division of Waste Management and the Land Quality Section,
Department of Environment and Natural Resources. The method of disposal
shall be consistent with the approved reclamation plan.
B. Mining refuse as defined by G.S. 74-49 (14) of The Mining Act of 1971
generated on -site and directly associated with the mining activity may be
disposed of in a designated refuse area. All other waste products must be
disposed of in a disposal facility approved by the Division of Waste
Management. No petroleum products, acids, solvents or their storage containers
or any other material that may be considered hazardous shall be disposed of
within the permitted area.
C. For the purposes of this permit, the Division of Land Resources considers the
following materials to be "mining refuse" (in addition to those specifically listed
under G.S. 74-49 (14) of the N.C. Mining Act of 1971):
1. on -site generated land clearing debris
2. conveyor belts
3. wire cables
4. v-belts
5. steel reinforced air hoses
6. drill steel

Page 10
D. If mining refuse is to be permanently disposed within the mining permit
boundary, the following information must be provided to and approved by the
Division of Land Resources Prior to commencement of such disposal:
1. the approximate boundaries and size of the refuse disposal area;
2. a list of refuse items to be disposed;
3. verification that a minimum of 4 feet of cover will be provided over the
refuse;
4. verification that the refuse will be disposed at least 4 feet above the
seasonally high water table; and
5. verification that a permanent vegetative groundcover will be established
13. Annual Reclamation Report
An Annual Reclamation Report shall be submitted on a form supplied by the
Department by February 1 of each year until reclamation is completed and approved.
14. Plan Modification
The operator shall notify the Department in writing of the desire to delete, modify or
otherwise change any part of the mining, reclamation, or erosion/sediment control plan
contained in the approved application for a mining permit and any approved revisions to
it. Approval to implement such changes must be obtained from the Department prior to
on -site implementation of the revisions.
15, Bonding
The security, which was posted pursuant to N.C.G.S. 74-54 in the form of a $70,191.08
Assignment of Savings Account (of which $70,100.00 is required for this site), is
sufficient to cover the operation as indicated in the approved application. This security
must remain in force for this permit to be valid. The total affected land shall not exceed
the bonded acreage.
16. Archaeological Resources
A. Authorized representatives of the Division of Archives and History shall be
granted access to the site to determine the presence of significant
archaeological resources.
a. Pursuant to NCGS 70 Article 3, 'The Unmarked Human Burial and
Human Skeletal Remains Protection Act," should the operator or any person in
his employ encounter human skeletal remains, immediate notification shall be
provided to the county medical examiner and the chief archeologist, North
Carolina Division of Archives and History.

Page 11
APPROVED RECLAMATION PLAN
The Mining Permit incorporates this Reclamation Plan, the performance of which is a condition
on the continuing validity of that Mining Permit. Additionally, the Reclamation Plan is a
separable obligation of the permittee, which continues beyond the terms of the Mining Permit.
The approved plan provides:
Minimum Standards As Provided By G.S. 74-53
The final slopes in all excavations in soil, sand, gravel and other unconsolidated
materials shall be at such an angle as to minimize the possibility of slides and be
consistent with the future use of the land.
2. Provisions for safety to persons and to adjoining property must be provided in all
excavations in rock.
3. All overburden and spoil shall be left in a configuration which is in accordance with
accepted conservation practices and which is suitable for the proposed subsequent use
of the land.
4. No small pools of water shall be allowed to collect or remain on the mined area that are,
or are likely to become noxious, odious or foul.
5. The revegetation plan shall conform to accepted and recommended agronomic and
reforestation practices as established by the North Carolina Agricultural Experiment
Station and the North Carolina Forest Service.
6. Permittee shall conduct reclamation activities pursuant to the Reclamation Plan herein
incorporated. These activities shall be conducted according to the time schedule
included in the plan, which shall to the extent feasible provide reclamation simultaneous
with mining operations and in any event, provide reclamation at the earliest practicable
time after completion or termination of mining on any segment of the permit area and
shall be completed within two years after completion or termination of mining.
RECLAMATION CONDITIONS:
Provided further, and subject to the Reclamation Schedule, the planned reclamation
shall be to regrade and satisfactorily revegetate any disturbed areas..
The specifications for surface gradient restoration to a surface suitable for the planned
future use are as follows:
A. All sideslopes shall be graded to a 2 horizontal to 1 vertical or flatter slope.
B. Any settling ponds and sediment control basins shall be backfilled and stabilized.

Page 12
C. The processing, stockpile, and other disturbed areas neighboring the mine
excavation shall be leveled and smoothed.
D. Compacted surfaces shall be disced, subsoiled or otherwise prepared before
revegetation.
E. No contaminants shall be permanently disposed of at the mine site. On -site
disposal of waste shall be in accordance with Operating Conditions Nos. 12.A.
through D.
F. The affected land shall be graded to prevent the collection of noxious or foul
water.
3. Revegetation Plan:
After site preparation, all disturbed areas shall be revegetated as per the Revegetation
Plan approved by Mr. Dan McClure, District Conservationist with the Natural Resources
Conservation Service on June 14, 1999.
Whenever possible, disturbed areas should be vegetated with native warm season
grasses such as switch grass, Indian grass, bluestem and gamma grass.
In addition, the permittee shall consult with a professional wildlife biologist with the N.C.
Wildlife Resources Commission to enhance post -project wildlife habitat at the site.
4. Reclamation Plan:
Reclamation shall be conducted simultaneously with mining to the extent feasible. In
any event, reclamation shall be initiated as soon as feasible after completion or
termination of mining of any mine segment under permit. Final reclamation, including
revegetation, shall be completed within two years of completion or termination of
mining.
This permit, issued March 15, 2000 and modified March 13, 2002, October 27, 2004,
March 4, 2005 and October 26, 2005, is hereby modified this 291h day of November,
2007 pursuant to G.S.74-52,
By: ;��kz z.l'zc, .-
✓� James D. Simons, Director
7 Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources

Aia
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
mons, P.G., P.E.
State Geologist
May 29, 2008
Mr. David Jarrell
North American Emerald Mines Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Blasting Complaint
North American Emerald Mine
Permit No. 02-06
Alexander County
Dear Mr. Jarrell:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
The review has been completed on the shot records you previously submitted for the April 16,
2008 through May 14, 2008 blasts at the North American Emerald Mine. Your company has been
found to be in compliance with the blasting conditions outlined in Mining Permit No. 02-06. 1 have
already notified the complainant, Mr. Fred Walker, of our findings.
It was noted that an unusually high airblast (134 dBl) was recorded by the seismograph on the
complaint date (April 24, 2008) at a distance (700 Feet) which is much closer to the blast than the
distance of the closest off site structure not owned by your company (1756 feet). We are aware that
the seismograph must beset up at a closer distance in order for the machine to trigger. In the future,
all airblast reading registering over 133 peak dBl using the 2.0 Hz or lower flat response
machine must be reported to this office regardless of the distance to the closest off site
structure. In addition, provide the estimated airblast to the closest off site structure.
Thank you for your continued cooperation. If you should have any questions on the above,
please contact me at [phone].
Sincerely,
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan
Ms. Judy Blackburn — Sauls Seismic via e-mail
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 -919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity \ Affirmative Action Employer- 50% Recycled \ 10% Post Consumer Paper

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, P.G., P.E.
Director and State Geologist
May 29, 2008
Mr. Fred Walker
173 Riverside Farm Lane
Hiddenite, North Carolina 28636
RE: Blasting Complaint
North American Emerald Mine
Permit No. 02-06
Alexander County
Dear Mr. Walker:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
Our office has completed its review of North American Emerald Mines Inc.'s blasting information,
including blast reports and seismograph recordings, related to the April 16 through May 15, 2008 blasts
conducted at its North American Emerald Mine. It was found that North American Emerald Mines Inc. was
in compliance with the blasting requirements of its mining permit during the period in question.
All peak particle velocities, a measurement of ground vibration with units in inches persecond (ips),
were well below the maximum allowable limits specified in North American Emerald Mines Inc.'s mining
permit. More specifically, all recorded values were at or below. 17 ips at a distance much closer than the
closest offsite occupied structure (the location where compliance with the permit limits is determined).
According to extensive research by the U.S. Bureau of Mines and others, particle velocities below 0.5 ips
effectively eliminate the possibility of any structural damage.
All airblast readings, a measurement of the atmospheric pressure wave (overpressure) with units in
psi or dBL, were also below the maximum allowable limits specified in the mining permit and well below the
U. S. Bureau of Mines' recognized level of 164 dBL for prevention of glass breakage. A key point worth
noting is that glass breakage occurs at much lower levels of overpressure than structural damage, such as
cracking plaster.
Thank you for your interest and patience in this matter. Hopefully I have answered your concerns
adequately. If you should have any additional questions or concerns, please contact meat [phone].
Sincerely,,
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan
1612 Mail Service Center, Raleigh, North Carolina 27699-1612-919-733.4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity 1 Affirmative Action Employer — 50% Recycled 110% Post Consumer Paper

LAND QUALITY SECTION BLASTING ANALYSIS WORKSHEET
(* = denotes fields where input data is needed)
Permit No.*: 02-06
Permittee*: naem
Mine Name*: naem mine
Blast Report No.*: 14
Peak Particle Velocity Check:
Date of Blast*: 04/24/08 Time of Blast*: 15:30
D = Distance to closest offsite occupied structure (ft): D* = 1756.00
W = Maximum pounds of explosives per delay (pounds): W* = 16,00
SD = Scaled Distance: SD = D/WA0.5 SD = 439.00
V = Peak Particle Velocity (inches per second): V = 160 (SD)A-1.6 V = 0.01
(*max. limit in mining permit is: V = 1.0 ips)
Based on known distances from the blast to the seismograph and any additional location,
the expected vibration level can be estimated at the second location as follows:
V = Particle velocity measured by the seismograph (ips): V* = 0.12
DS = Distance from blast to seismograph (ft): DS* = 700.00
d = Distance from blast to second location (ft): d* = 1756.00
PPV = Theoretical peak particle velocity at the closest offsite occupied structure (ips):
PPV = V(DS/d)A1.5 PPV= 0.0302
Airblast (Overpressure) Check:
P = Unconfined Airblast/Overpressure (psi): P = 82 (D/WA0.33)A-1.2 P = 0.031421
To convert (psi) to (dBL): (P/2.9 x 10A-9)log x 20 P = 140.70
AB = Confined Airblast/Overpressure (dBL): AB = P (dBL) - 35 dBL (for quarry situation) AB= 105.70
(*max. limit in mining permit is: AB = dBL)
5��

Explosives Column Check:
(this is a very approximate method based upon numerous assumptions;
specific densities may vary greatly depending upon the type and manufacturer
of the explosive products used in the shot; must consider each explosive used;
refer to Dupont Handbook for actual SPD, otherwise use the following:)
Assumptions (per Ireco):
If "straight" emulsion is used, use SPD (specific density) = 1.20
If a "blend/slurry" is used, use SPD (specific density) = 1.25
If "straight" anfo is used, use SPD (specific density) = 0.85
Ratio between explosives:
Total pounds of Explos. #1* = 885.00
Total pounds of Explos. #2* = 850.00
Ratio between explosives = 1.04
Average pounds of explosives used per hole (pounds)* = 13.00
Breakdown of average pounds of explosives per hole due to ratio:
Explosive #1 = 0.51
Explosive #2 = 12.49
SPD = Specific densities for each explosive
SPD for Explos. #1* = 1.51
SPD for Explos. #2* = 0.82
HD = Hole Diameter Used in Shot (inches): HD* = 3.00
LD = Loading Density (pounds per foot of column): LD = SPD(.34)(HD)A2
LD for Explos. #1 = 4.62
LD for Explos. #2 = 2.51
Explosive column height for each explosive (feet):
Explos. #1 = 0.11
Explos. #2 = 4.98
Total explos. column height = 5.09 a
Stemming height used in shot (feet)* = 6.50
Total height of explosive column(s) and stemming in the hole = 11.59
Total depth of hole denoted on the blasting report for the shot in question* = 13.00
Analysis Completed By:
q,o

DAVID L. JARRELL BLASTING CON,r-ANYE
Blast# / S Date: e- ll&leX MAY 1`1;j(TNe , ,-G ( d7/.Z
Location: ✓y p11-4 /
Weather Condition: .Clear Cloud - Temperature 70 a
Nearest Protected Structure: •✓: ✓L /Z7 �: Distance and Direction: /7 S 6 ./(/
Seismograph Location: A1,4
/ FA Distance and Direction: "7oJ/
Material Blasted: /�d c-.�� Hole Diameter: Z �'Number of Holes:
Burden: L/ g: i k iDepth:
r �S-
`a� Spasci�n Depth:./ /3 Face Height:
Subddll: Backfill: y� Length of Stemming: (,- 5 r Deck Sfemmi,,,.• X55)'',
Type of Stemming: 6.,—& el Bla
Explosives Type
� �� fir•
Total Weight of Explosives:
Used
Quantity
`i 7, 3- Ms
SJ. /5s
1,6,90 /hs
• Maximum Number of Holes/Delay (8 miliseconds):
• Maximum Weight of Explosives/Delay:
Initiation System Used
Quantity
Length
Delay/Type
Electric
Non -Electric
ys-
/G
zs-3S b
Surface Delays
Initiation Method
Machine
Used
Number of Circuits
Electric
_
Non-Electdc
Z�zy
Z
of
Manufacturer
Lt H , u+ui x
hS-Gu r��x
Scale Distance:
(Ds=D/Square Rodt of Max
Manufacturer
Olms Resistance
Material Quantity Powder Factor Specific Gravity
_Cubic Yards o
_Tons
Seismograph Type: Calibration Date: Trigger Level:
Location erection Distance Readings R T V dbf
S. ,/y`G, �y�i
Person Taking Reading: _
Computer Print
Company:
Seismograph Print

71,
utable Date: l8Feb08
f
Company. NAEM
Location: DUNCAN
Operator: JEREMY STRAUSS
Notes: SHOT#13 SHOT LOC-
Nomis Seismographs, Inc.
Seismic, Inc. - Report
Telephone., 800-351-8566
APR 16, 2008 at 15:50
Graph:4077
Record Duration: 3 sec
Sample Rate: 1024/sec
Radial: 0.070 finis ((-� 64 Hz
106.4 ms
Air Scale:.00461 psi/div.
Wgt. Per Delay: 15 fib
O
Transverse: 0.060 in/s t. 73.1 Hz
169.9 ms
Seismic Scale: 0.16 in/s/div.
Distance: 700 ft
O
Vertical: 0.040 in/s a 64 Hz
98.6 ms
Air Trigger (dBL): N
Scaled Distance: 180.7
O
Air: 113 dBL Q 28AHz / .00131 psi
1291.0 ms
Seismic Trigger:.05 in/s
O
i
o'
Waveform Analysis I Calibration
Frequency vs. Amplitude Plot - USBM Limits (RI 8507,1980)
Frequency (riz)
Frequency (Hz)
Frequency (Hz)

DAVID L. JARRELL BLASTING uJMPANY
Blast# qq Date: Time:
Location:.
Weather Condition: Clear & Cloudyy - Temperature CCU U
Wind Direction: Wind Velocity: /!J .mnh
Nearest Protected Structure: F�_ •'mot r %�2_S' Distance and Direction: / % J G
Seismograph Location: A�'5M Distance and Direction: 206 "�JC
Material Blasted: La, X HoleDiameter: 3 Number of Holes
Burden; Spacing: tC % Depth: / 7y Face Heiaht: Z`- �/1i1.
Subdrill: Backfill: 9' Length of Stemming: Deck Stemming )0'
Type of Stemming: Blasting Mats Used: Type of Mats f�
Explosives Type Quantity Manufacturer
otal'Weight of Explosives : Z,
• Maximum Number of Holes/Delay (8 miliseconds):
Z—
Scale Distance:
• Maximum Weight of Explosives/Delay: L4 / S
(Ds=D/Square Rodt of Max
Initiation System Used Quantity Length
Delay/Type
Manufacturer
Electric
Non -Electric / z
i Surface Delays
Initiation Method Machine Used
dumber of Circuits
Olms Resistance
_ Electric 99
�L Non -Electric F o •e'« / �r
Material Quantity
Powder Factor Specific Gravity
Cubic Yards .3067
_Tons
Seismograph Type: Calibration Date: Trigger Li
Location Directi Distance Readings
Person Taking Reading: _
Computer Print F1
Company:
Seismograph Print 71

i'enion 1.3,5
Executable Dale: 18Feb08
awls
Company:. NAEM
Location: DUNCAN
Operator: JEREMY STRAUSS
Notes: SHOT#14 SHOT LOC-
Nomis Seismographs, Inc.
imic, Inc. - Report
Telephone: [phone]
APR 24, 2008 at 15:30
Graph:4077
Record Duration: 3 sec
Sample Rate: 1024/sec
O R..diei: 0.120 it s • : 51.2 liz 375.0 ms Air Scale:.03686 psi/div. Wgt. Per Delay: 16 lb
Transverse: 0.115 in/s @ 73.1 Hz 733.4 ms Seismic Scale: 0.16 in/s/div. Distance: 700 ft
O Vertical: 0.060 in/s @ 42.6 Hz 485A ms Air Trigger (dBL): N Scaled Distance: 175.0
O Air: 134 dBL @ 42.6Hz / .01446 psi 470.7 ms Seismic Trigger:.05 in/s
Waveform Analysis Calibration
i
i,
Frequency vs. Amplitude Plot - USBM Limits (RI 8507,1980)
Frequency (Hz)
Frequency (Hz)
Frequency (Hz)

DAVID L. JARRELL'BEASTING COMPANY
Nearest Protected Structure: Jul,vr'f�" �r� Distance and Direction: /?�'/;
w
Material Blasted: j ae:.14 Hole Diameter: Z 3/4f Number of Holes:
i
Burden: 2 Spacing: %.# % Y(+Cd' Depth: t/ 7 ' Face Height: I T t
Subdrill: 0 Backfill: 0 Length of Stemming: 6 J" Deck Stemming: .40—
Mats Used: 10" Type of Mats:
Explosives Type Quantity
t& rire- /T
Total Weight of Explosives
*Maximum Number of Holes/Delay (8 miliseconds):
* Maximum Weight of Explosives/Delay: S� As
Initiation System Used Quantity Length Delay/Type
_ Electric
_ Non -Electric Ike, z1j.��
r n�
Surface Delays C y rS
Scale Distance:
(Ds=D/Square Root of Max
Manufacturer
Initiation Method Machine Used Number of Circuits Olms Resistance
Electric
Non-Electric���
Material Quantity Powder Factor Specific Gravity
_Cubic Yards `Z Z
_Tons _ V Z-
Seismograph Type: Calibration Date:
LocatG�tiion� /�'(jy Direction Distance
%Zf [/ J� C t<Y.
Person Taking Reading:
Company:
Computer Print Seismograph Print

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E.
Director and State Geologist
Mr. David Jarrell
North American Emerald Mines Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Blasting Complaint ,
North American Emerald Mine
Permit No. 02-06
Alexander County
Dear Mr. Jarrell:
Land Quality Section
April 25, 2008
Michael F. Easley, Governor
William G. Ross Jr., Secretary
This office recently received a complaint directed at blasting practices conducted at the
above referenced quarry. According to the complainant, Fred Walker, no warning siren was
given and flyrock was thrown within 100 feet of the blast site.
As provided in the mining permit for this site, you are requested to provide this office
duplicate copies of all shot records related to the blasts conducted on April 24, 2008, including
any seismograph recordings made. Furthermore, please forward all shot information for one
production shoot conducted immediately before and one production shot after the blast in
question for this office's review.
It is recommended that you discuss this matter with Mr. Walker. His address and
telephone number are as follows:
173 Riverside Farm Lane
Hiddenite, North Carolina 28636
828-635-6335
I look forward to receiving the requested information in the near future. Your continued
cooperation will be appreciated.
Sincerely,
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan, PE
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 I FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity 1 Affirmative Action Employer —50% Recycled 110% Post Consumer Paper

blast complaint
r r_
Subject: blast complaint
From: Scott Harrell <[e-mail]>
Date: Thu, 24 Apr 2008 16:43:45 -0400
To: "Judy.wehner>> Judy Wehner" <[e-mail]>
Judith -- Hope all is well up there. I received a blast complaint regarding the
North American Emerald Mine in Alexander County (Permit No. 02-06). The complaint
came from Mr. Fred Walker, who indicated the blast occurred about 3:35pm today
(4/24/08). Mr. Walker's number is 828.635.6335 and his address is 173 Riverside Farm
Lane, Hiddenite, NC 28636. He said no warning call or siren was given before the
blast.
He also indicated that he can identify a half dozen or so rocks that have traveled
1200+ feet from the mine as the result of past blasting, some of them weighing
approximately 2 lbs.
0
a'1'`0
1 of 1 4/24/2008 4:54 PM