02-06 North American Emerald Mine File Pt. 30 Redacted

Memo
To: Judy Wehner
� P�G0�vm
From: Zahid Khan Z t
Date: 8/6/2007
Re: North American Emerald Mine Permit, Alexander County, and Yadkin River Basin
Application/Permit #: 02-06
The modification of recent submittal dated July 5, 2007 and received in MRO on July 10, 2007
with suspense date for comments July 31, 2007 was reviewed. Measures must be provided
along the proposed haul road down the creek on the west side of the mining area. It is still too
difficult to determine the exact location of the haul road. The temporary construction entrance
should be constructed of 2" to 3" coarse aggregate. The map detail sheet should reflect on the
detail sheet. A map showing a larger scale and contours will help to determine if the diversion
ditches are needed to direct flow towards silt basins. To obtain maximum trapping efficiency of
sediment traps, keep surface area at peak flow as large as possible. Allow the surface area,
0.01 acres per US based on the 10-year storm. Rainfall intensity and C values are low.
Temporary diversion ditches directing flow towards basins shown uphill.
A copy of Tim comments, inspection report by Tim is attached for your review.
Please contact Tim or me if you need additional information.

JCT-19-2007 03:51P FROM:N R E M
028 635 7080 TO''31,37158801 P.1
FAX
Total Pages Sent = S
October 19, 2007
TO: Ms. Judy Wehner
FROM: David Jarrell
North American Emerald Mines, Inc.
We are FAXing you the following as evidence of our having increased the Land Bond
Certificate of Deposit to the $70,191.08
#1 The existing CD has a value of $59,501.56 as indicated on Exhibit "A"
#2 The new CD with a value of $10,689.52 as indicated on Exhibit `B"
The total value of the 2 CD's is $70,191.08
#3 The completed "Assignment of Savings Account" from PeoplesBank.
We will be mailing you the signed "Assignment of Savings Account" from PeoplesBank
in the next outgoing -mail.
Note: Exhibit "B" (the new CD) must be sent to two (2) other officers of North
American Emerald Mines, Inc. to be signed. As soon as this is signed we will send you a
copy for your records.

James D. Simons, PG, PE
Director and State Geologist
Certified Mail
Return Receipt Requested
7003 1680 0000 1484
Mr. David Jarrell
North American Emerald Mines Inc
531 Duncan Lane
Hiddenite, North Carolina 28636
AMA
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
Michael F. Easley, Governor
William G. Ross Jr., Secretary
August 6, 2007
RE: North American Emerald Mine - Permit No. 02-06
Alexander County - Yadkin River Basin
Dear Mr. Jarrell:
The review has been completed on the modification request your company submitted
for the referenced mine site. However, the following is needed to continue processing your
application:
The reclamation bond was calculated for this site using the information submitted on the
mine map received by the Land Quality Section on July 5, 2007. The reclamation bond for this
site has been calculated to be $70,100.00. The calculation worksheet is enclosed for your
review and the bond or balance ($11,100.00) will be required prior to approval of this
modification renewal.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mine, Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that the modification request cannot be completed until the new bond
amount has been received.
As required by G.S. 74-51 (h), you are hereby advised that you have 60 days from the
date of your receipt of this letter to submit the reclamation bond. If you are unable to meet this
deadline and wish to request additional time, you must submit information, in writing, to the
Director clearly indicating why the deadline can not be met and request that an extension of
time be granted.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 / FAX: [phone] �o
512 North Salisbury Street, Raleigh, North Carolina 27604 /
An Equal opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper ` C' CVO

M�Ra t ��E� MAIL
Page Two
In order to c
bond to n1Y attention nPletethe fhe Processing
9 of Your Land9 address: modification request,
�ivisio of ity Section please fo
depart Land Resources Huard the
1612 Nja7 nt °f Environ
Raleigh N� 276g9 e dent and N
Ple ter Natural Resources
ase contact me at (919) 733 457q if
You have any questions.
Sincerely,
Enclosures, BOnd Fo ms
Bond r
cc. Calculation
Mr. Zahid Khan PE
quitV " v
Assistant wehner
Land State Mn
Quality Sectinlion g Specialist
wOrksheet

r NqA olio cav
�in1Gt4� /rl 1i1,8
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
oa-at�
The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a
51 range of $500 to $5, 000 per affected acre) for each permitted mine site based upon the acreage approved
by the Department to be affcted during the life of the mining permit. Please insert the approximate
f h o eration that you intend to affect during the life of this mining
acreage or each aspect oft a mining p
ptl fin addition. please insert the appropriate
hermit
Schedule ofReclamat:on Costs
provided with this apc
calculate your bond for you based upon your maps an
AFFECTED
CATEGORY
ACREAGE
Tailings%Sediment Ponds:
9Q Ac.
Stockpiles:
�`„�
Ac.
Wastepiles:__
Ac.
Processing Area/Haul Roads:
10. 3 Ac.
Mine Excavation:
Ac.
Other:
3 Ac.
TOTAL AFFECTED AC.:
Ae•
(TOTAL PERMITTED AC.:
9y=Ac.)
RECLAMATION
RECLAMATION
COST/ACRE*
COST
X
$ 1600' /Ac.
_ s 4 170
X
$46_W 6D /Ac.
_ $ M36%reo
X
$ &opq /Ac.
a
_ $ 44'
X
$ l 0 '� /Ac.
ao
_ $!i19y
X
$ BJ0006h /Ac.
_ $ 1380Da0
X
$ 6W'o /Ac.
_ $ a3qodd
Tem Or XL Yermanem JeCnIIletllauVu w L+��+�_• "--
Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage & .9 Ac.
b) Positive Drainage I tP • 0 (p Ac.
X $1,500.00 = $ a y r0Ct bo
SUBTOTAL COST: $ /p(o a I -
Inflation Factor: ' a60
0.02 X SUBTOTAL COST: $ X Permit Life (1 to 10 years):
INFLATION COST: $`�� 3 •�S
TOTAL COST = SUBTOTAL COST+ INFLATION COST = $ ?OTI
otal Reclamation Bond Cost: $ 2v ®© o
(round down to the nearest $100.00)
rA Obbdo

Subject: North American Emerald Mines, Alexander Co., 02-06
From: Tim Garrett<[e-mail]>
Date: Wed, 01 Aug 2007 13:47:49 -0400
To: Zahid Khan <[e-mail]>
Zahid, I notified Judy yesterday and told her I would make an on site visit
in Raleigh
today. I see no problems with the modification regumi�: The maps are good and they
are operating within the limits of the existing p
er
Tim
Tim Garrett - [e-mail]
North Carolina Dept. of En
Land Quality Section Resources
Div. of Land Resources
610 E. Center Ave., Suite 301
Mooresville, NC 28115 Fax. [phone]
Ph: [phone]
8/1/2007 2:05 ]
1 of 1

North '-partment of Environment and Natil-11 Resources,
L d Quality -.ion
Divisio, of Land Resources, an TTT^TT
'1 { - -- (PERMITTED MINE)
1. MINE NAME �tblzTLk Rtit��"Jd J Eku.Jzn( D 141 rJ 2. MINING PERMIT # bZ -D&
fl�c l�G
4. COUNTY A LEl[A� &-
3. OPERATOR AI3e rlt kr� u*' �u ` "' ZSG3�o
5• ADDRESS T I D'j L" 1 LASE D Z o t 0 7. RIVER BASIN yLADV-' , j
6. PERMIT EXPIRATION DATE v 1
8. Person(s) contacted at site D 41 D 10. Pictures? ❑ Yes Erf�40
9. Was mine operating at time of in ��tion12'emi 0g ince last inspection? C�Yes ❑ No
11. Date last inspected: /�
n
13. Is the mine in compliance with the operating
f�a �z Conditions f the Permit C�� �❑/ No
t explain: SITE t.iS/%� f9A9F- -r/-C i- '
14. Is the mine in compliance with the Reclamation Conditions of the Permit?
If no, explain:
15. Did any of the above deficiencies result in offsite damage? ❑ Yes
type and severity of the damage:
16. Corrective measures needed and/or taken:
Other recornrnenaanonb
18. Is the Annual Reclamation ncyv,I " --r -- - --
19. Follow-up inspection needed? Yes ❑ No
20. No. of additional pages of Inspection Report .
INSPECTED BY: _r, kv
Telephone No: Lb -ITT
White copy to file
Q
Yellow copy to operator
es ❑ No
If yes, describe the
Not Reviewed
rropubou uaw i - —
21. Copy of Report sent to operator 9 /(_. � / ° /
DATE I/
Pink copy to Mining Specialist 10197

[TRANSMISSION VERIFICATION REPORT
TIME : 08/06/2007 14:55
NAME : NC DENR DLR
FAX : [phone]
TEL : [phone]
SER.k : xxxxxxxxxxxx
DATEJIME
08/06 14:54
FA:: NO./NAME
918283276792
DURATION
00:00:39
PAGE(S)
02
RESULT
OK
MODE
STANDARD
ECM

North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Quality Section Mining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fax: [phone]
FAX COVER SHEET
FAX NUMBER TRANSMITTED TO: !6 a $3 -• '3
To: l/�n 01 op%� ut/,� ,
Of:
From:kIL&VI
I�
Date:
COMMENTS:
*IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US IMMEDIATELY AT [phone].

AJ
firm i1 �.e
E. DETERMINATION OF AFFECTED ACREAGE AND BOND ,v a Zo
The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a
a range of $500 to $5, 000 per affected acre) for each permitted mine site based upon the acreage approved
by the Department to be af�ted during the life of the mining permit. Please insert the approximate
acreage, for each aspect of the mining operation that you intend to affect during the We oft is mining
u�>wuuc vi nec[urrtullun uoJ'[S proviaea wan rms a
calculate your bond for you based upon your maps e
AFFECTED
CATEGORY
ACREAGE
Tailings/Sediment Ponds:
Ac.
Stockpiles:_
Ac.
Wastepiles:
3 •p7 Ac.
Processing Area/Haul Roads:
Q Ac.
J
Mine Excavation:_
Ac.
Other:
/,3 Ac.
TOTAL AFFECTED AC.:
as Ac.
(TOTAL PERMITTED AC.:
99,S Ac.)
RECLAMATION
COST/ACRE*
X
$ iMf /Ac.
X
$ . / 6Q0 tsa /Ac.
X
$ Rt00� /Ac.
X
$ ! 000 /Ac.
X
$ AD00°" /Ac.
X
$ Eft /Ac.
RECLAMATION
COST
$
_ $tel i0da
$ tom"
_ $ J360066
$ a3yod'
i 'v.uo uio a v 111JU Ar r JVA- i VA) AU. above into the tollowing two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage (P .9 Ac.
b) Positive Drainage Q(p Ac. X $1,500.00 = $ 66
Inflation Factor: SUBTOTAL COST:
0.02 X SUBTOTAL COST: $ 4, 916
QUX Permit Life (Ito 10 years):
INFLATION COST: $_ t3913 0
TOTAL COST = SUBTOTAL COST+ INFLATION COST = $
Reclamation Bond Cost: $
(round down to the nearest $100.00)
rbi 06 w04e I po
IMO

MINING CHECKLI5T FOP, FOUTING
Applicant's Name:
alb, �, ,^�_ Project Name:
Count ,,/ Date Received: �
Applic./Permit No.: /j y' t
River basin Name:
Reviewer: I
New p Renewal (5Modification (inside permit boundari Q Release
❑ transfer
❑ Modification (outside permit boundaries) ❑Fee Needed:
p partial Release Additional Information
❑ Fee Received: $ —
p� route d hire annlioa ion c^^�*` p p ,onal
Regional Office (2 complete co ies; attach the DWQ and DAQ
Office Mining Application Review Ghecklist to one copy and attach bah
"Mining Application Review Form" to the other cDoa send�u ehcopier" E � Re�gG,ndal Eng )
Date; Routed Redri
Division of Water Resources Rec'd
❑ NC Wildlife Resources Commission Date: Kouted ,
❑ U5 Fish & WildlrFe Service
Date: Routed _— Rec d —
(Only new applications and modification requests that add land to the permit
I Date: Routed — Rec'd
❑ Division of Parks & Recreation Date. Routed Redd
[I NC Geological Survey Section
lications and modification requests that add land to the it)
(Only new appDate: Routed'—� Faeri
—
❑ Division of Archives & History
(Only new applications) Rec'd
Date: Routed
❑ Other:
**suspense Date for Comments:
from receipt)
❑ Please note the following:
(no later than 25 days
3���-31 ojy�

R. CARROLL WILLIAMS, P.E.
CONSULTING ENGINEER
SEWER, DRAINAGE - EROSION
DESIGN, WATER - 828 327 4697
4840 N. CENTER ST.
HICKORY, NC, 28601
3 July 07
Ms. Judith Wehner
Assistant State Mining Specialist
Land Quality Section
Division of Land Resources, NCDENR
1612 Mail Service Center
Raleigh, NC 27699-1612
Re: North American Emerald Mines, Inc
Modifications to Mining Permit
Permit No. 02-06
Alexander County
Dear Ms. Wehncr:
TELEPHONE ( )
FAx [phone]
In answer to your last letter, I am submitting the following and as attached.
First, please note that we wish to hold with the existing 6.9 acres as the active mining area, for the
remainder of the present permit period. The balance of the 143 acres will be addressed when the
permit is extended.
The rock storage area is the primary concern at this time and its expansion. The heavy layers of
overburden and the huge amount of rock being excavated daily is pushing to the limit to find
storage space for this dirt and rock. Another area of concern is the haul road down the creek on
the west side of the mining area. The property line is basically the center line of the existing 10'
gravel road. We propose to grade out and gravel another 5' for a 10' wide drive on the NAEM
side of the property line. This provides a one way lane down to the creek and turn -around and
one-way back to the mining activities.
You will notice that I have color -coded the basic elements of the plan, hopefully so that one can
follow the plan sheets easier.
All of the calculations have been revised to fit the plan.

Page 2
one final note is that in the reclamation plan the mining area/pit and the plans to dig deeper make
it seem that a pond is the best use for this area.. This is addressed in the bonding calculations.
If there are any questions, please let me know.
Sincerely,
"� Q, oA,.U, w ;.R a...�
R. Carroll Williams, P. E.

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Project Description
Worksheet
Circular Channel
Flow Element
Circular Channel
Method
Manning's Formu
Solve For
Discharge
Input Data
Mannings Coeffic
0.024
Channel Slope
025000 ftA
Depth
.,
Diameter
40 in in
��2.) CMQ
Results
Discharge
20.84 cfs
Flow Area
3.1 ft'
Wetted Perime
5.29 ft
Top Width
0.00 ft
Critical Depth
1.64 ft
Percent Full
94.0 %
Critical Slope
0.029020 ffflt
Velocity
6.80 We
Velocity Head
0.72 It
Specific Energ-
2.60 ft
Froude Numbe
0.67
Maximum Disc
20.84 cfs
Discharge Full
19.37 cis
Slope Full
0.026927 fUR
Flow Type
Subcrii ical
Worksheet
Worksheet for Circular Channel
�j �9`CLJ-L �IQE �61�
FLhsl�t3aRV R1SE� 1FJ }ZoeK S-fo t'-oGE �t¢.=rt
Project Engineer. R. Carroll Williams
c9program files�haestadlfmwlpmject1.fm2 R. Carroll Williams, P. E. FlowMaster v7.0 [7.00051
06/27/07 04:04:12 PM 0 Haestad Methods, Inc. 37 Brookside Road Waterbury, CT 06708 VSA [phone] Page 1 of 1

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--
Gemstone, Borrow = Borrow/fill
Dimension Stone, FS = Feldspar, MI = Mica, LI =
COq+pdODIS CODES: SG = Sand and/or Gravel, o K anit sillimanite/Andalusite, PH
dirt, CS = Crushed Stone, DS
p o h llite, OL = Olivine, ICY y TI = Titanium, and OT = Other
Lithium, PF = Yr P Y PE = Peat. AD = Gold.
Phosphate, CL = Clay/Shale,
g. Iles W. Iles P.area H'R' Min®$500/ac.(L)
T/8 Ponds $2000(PD)
SGr GS........ $500/ac.(L) $1800/ac. $2040/ae. 51800 ac.
Borrow 1500(FI) 500(L)
500(L} 1800
2000 2000 250o(PD)
C5, DS,
FS, MI, 1500(FI)
LI, PF,
OL, ICY 5000 2000(L)
1000(L) 2500 5000 5000(PD)
PH 2500(FI)
5000 2000(L)
1000(L) 2500 5000 3700(PD)
CL 2500(FI)
3500 2000(L)
PE, AU,
1000(L) 2500 3000 5000(PD)
TI, OT 2500(FI)
(L) =reclamation to a lake and revegetating sideslopes
(FI) = reclamation by filling in and revegetating
(PD) = reclamation by grading for positive drainage revegetating
E WITH THE BOND AMOUNT DETERMINED BY THE
AS PER NCAC 15A 5B.0003, IF YOU DISAGRE
BOND CAI.CDLATION WORKSHEET, YOU MAY SUBMIT AN ESTIMATE OF RE THIN 30 COSTS FROM
THE
Land Quality Section, 16i2 Mail Service
A THIRD PARTY CONTRACTOR. SAID ESTIMATE MUST BE PROVIDED WITHIN 30 DAYS TO
FOLLOWING ADDRESS: Mining Program,
Center, Raleigh, North Carolina 27699-1612
_ LIME AND FERTILIZER COSTS PER
R ACRE
YEAR -RED SEEDING MIXTURE COSTS
PLAN IN APPLICATION/PERMIT DOCUMENT)
G COPER ACRE
MULCH AND ANCHORINSTCOS S NECESSARY TO
ANY OTHER RECLAMATION
TION PLAN FOR THE SITE IN OVESTION
(FROM APPROVED REVEGETATION
C�LY WITH THE APPROVED
RECIAMA
yOU HILL BE NOTIFIED AS SOON AS POSSIBLE OF THE DIRECTOR'S FINAL BOND
DETERMINATION.
1,000 �Of thi- p-blDDZVA1 nma or aA= j du"L alaIIRROODCRR 3.01 r a•!H par cOCY• 4/2002
DSVI62OR W LMW ="W=8 - lalw gjhLzvT 3R=xON
-21-

FTRANSMISSI70N:VER:IFICATICO)N=REPORT
TIME :
06/04/2007 10:26
NAME :
NC DENR DLR
FAX :
9197159801
TEL :
9197333833
SER.#
xxxxxxxxxxxx
DATE,TIME
06/04 10:24
918286357080
FAX NO./NAME
00:01:49
DURATION
02
PAGE(S)
OK
RESULT
MODE
STANDARD
ECM

North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Quality Section Mining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fax: [phone]
FAX COVER SHEET
FAX NUMBER TRANSMITTED TO: g a. q — � 3c _ "
To:
Of..
From:
RE:
Date:
COMMENTS:
*IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US IMMEDIATELY AT [phone].

APPLICATION FOR A MINING PERMIT 0 a
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a range
of $500 to $S, 000 per affected acre) for each permitted mine site based upon the acreage approved by the
Department to be affected during the life of the miming permit. Please e life of this the approximate
mat e acreage,ml-I 2Z-
AFFECTED
RECLAMATION
CATEGORY
ACREAGE
COST/ACRE*
Tailings/Sediment Ponds:
°I Ac.
X
$ 15060' /Ac.
6.1690 Ac.
X
$ /00°! /Ac.
Stockpiles:
Ac.
X
$ _aM06 — /Ac.
Wastepiles:
,07_
Processing Area/Haul Roads:
,03 Ac.
X
$1$bb°0— /Ac.
i& Ac.
X
$ a�w /Ac.
Mine Excavation:
IA Ac.
X
$ JI /Ac.
Other:
TOTAL AFFECTED AC.:
Q(O° Ac.
( TOTAL PERMITTED AC.:
9 ,6 Ac.)
RECLAMATION
COST
Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage
b) Positive Drainage
Ac.
Ac. X
Inflation Factor:
0.02 X SUBTOTAL COST: $ K 1 ($�
TOTAL COST = SUBTOTAL COST +
$1,500.00
SUBTOTAL COST:
X Permit Life (1 to 10 years): W
INFLATION COST: $ {'1 (e'd4
INFLATION COST = $ ��6 "SN • b10
Total Reclamation Bond Cost: $0G, !706p0
(round down to the nearest $100.00)
n►�ec�s *4�1700Od
-14- b9106D°?�
Ql'l

I ( --
TRANSMISSION VERIFICATION REPORT
TIME
: 05/04/2007 10:30
NAME
: NC DENR DLR
FAX
: 9197158801
TEL :
9197333833
SER.#
xxxxxxxxxxxx
DATE,TIME
05/04 10:28
FAX NO./NAME
918283276792
DURATION
PAGE(S)
06:01:44
RESULT
OK
MODE
STANDARD
ECM

At
De of Environment and Natural Resources
North Carolina D
- Land Quality Section Mining Program
Division of Land Resources
Center,
Raleigh,
715 ggplina 27699
1612 Mail Service Cent
[phone] Fax:( )
FAX COVER SHEET
4 32►? 9
1
FAX NUMBER TRANSMITTED TO:
W�
To:
Of..
From:
RE:
l7 LI 0
Date:
COMMENTS:
*IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US IMMEDIATELY AT [phone].

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE Michael F. Easley, Governor
Director and State Geologist William G. Ross Jr., Secretary
May 4, 2007
Certified Mail
Return Receipt Requested
7003 1680 0000 147L 2003
Mr. David Jarrell
North American Emerald Mines Inc
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Jarrell:
We have reviewed the application renewal modification request your company
submitted for the referenced mine site. However, the following information is needed to
continue processing your application:
1. The mine map needs clarification. Please clearly indicate the 94.6 acre permit
boundary on the mine map. In addition, please clearly indicate the existing and
proposed features on the mine map. It is suggested that the feature and permit
boundary be outlined in specific colors, such as black for permit boundary, blue
for sediment control structures, etc.
2. 1 am enclosing comments from the Mooresville Regional Office regarding the
modification request. Please address the concerns.
Please note, the Land Quality Section may request additional information, not included
in this letter, as the mining application review progresses. p
lOti
The reclamation bond has been calculated using bmitted in'the
application. The reclamation bond for this site would b $1 05,700.00. The calculation
worksheet is enclosed for your review and the new bond or balance ($46,700.00.00) will be
required prior to approval of this modification request.
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 2
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that our review cannot be completed until all of the items listed
above have been fully addressed.
In order to complete the processing of your application, please forward two (2) copies of
the requested information and the bond to my attention at the following address:
Land Quality Section
Division of Land Resources
Department of Environment and Natural Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
As required by 15A NCAC 513.0013, you are hereby advised that you have 180 days
from the date of your receipt of this letter to submit all of the requested information. If you are
unable to meet this deadline and wish to request additional time, you must submit information,
in writing, to the Director clearly indicating why the deadline can not be met and request that
an extension of time be granted. If an extension of time is not granted, a decision will be made
to grant or deny the mining permit based upon the information currently in the Department's
files at the end of the 180-day period.
Though the preceding statement cites the maximum time limit for your response, we
encourage you to provide the additional information requested by this letter as soon as
possible. Your prompt response will help us to complete processing your application sooner.
Please contact me at [phone] if you have any questions.
Sincerely,
Ou"- P -
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
Enclosures: MRO Comments
Bond Forms
Bond Calculation Worksheet
Cc: Mr. Zahid Khan

rth American Emerald Mine r
Subject: North American Emerald Mine
From: Charles Gerstell <[e-mail]>
Date: Mon, 30 Apr 2007 11:10:51 -0400
To: zahid Khan <[e-mail]>
request submitted
ZaI h
and have the following comments: 1.) The
I have reviewed the additional information for the modification
t to read.of the items shown on the map are difficult to
for North American Emerald Mine (02-06) area. Mr. Williams
map remains diffi�olosed berm alongmanwest side of the mining and other items
see such as the proposed
make the berms, diversion ditches, basins, ion of proposed one
needs to find a way
stand out so a thorough review can be made. The theuwesterntstill
eter of difficult
of the
lane road along the
Measuressouthern
mustebemprovidedtalongnthe western erimeter imentation
delineate. 2.) ro osed berm construction to p provided
mining area along the p P
as
damage. Temporary silt fence should
adjacentrto the main ehaul eroad sleading to
along the proposed safety
proposed silt
the mining area. Temporary silt fence should willconlydcatch flow from the road
basins shown along this haul road on
to sheet 1 The proposed
ermanently stabilized. 4.) to be located
itself. The aest fence
the haul
haveroad been tpd on the outside of the berm (east side)
until the slop the southern perimeter of the mining area appears
one lane road along
e area. This
� Mr. Williams does not label the width of the buffer on
within the 35-foot undisturbed buffer. Therefore, should this be labeled a
unexcavated buffer. 5',)reviously permitted portion of the rock storage
the north side of the p sheets. 6.) Calculation sheets show only
should be labeled on all relevant map
the haul
one set of calculations for the proposed silt basins to be located along
road leading to the mining area. Is this because both basins have the same
perforated
drainage area? This must be clarified. The temporary construction
7,) area has
The silt basin designedfor
permittedthepractice.
rack storage temporary
must reflect
riser. This is no long to 3" coarse aggreils
gate. Map
entrance must be constructed of 2"
this requirement. 8.) Some of tovbeslocatedcwithin athegundisturbed to silt sbuffer.
area appearproposed
and No. 3 at the mining I did not review the calculations for the
They should be relocated. ou have any questions regarding
basins. Please let me know if y
Thanks,
C.T.
Charles Gerstell - [e-mail]_
North Carolina Dept. of Environment 6 Natural Resources
Div. of Land Resources - Section
Land Quality
610 E. Center Ave., Suite 301
Mooresville, NC 28115 Fax: [phone]
Ph: [phone]
I of 1
4/30/2007 12:48

APPLICATION FOR A MINING PERMIT
E. DETERMINATION OF AFFECTED ACREAGE AND BOND
The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a range
of $500 to $5, 000 per affected acre) for each permitted mine site based upon the acreage approved by the
Department to be affected during the life of the mining permit. Please insert the ctnnroximate acreage. for
AFFECTED
RECLAMATION
RECLAMATION
CATEGORY
ACREAGE
COST/ACRE*
COST
Tailings/Sediment Ponds:
3391 Ac.
X $ t 600pO /Ac.
= $6:970Go
Stockpiles:
&• e> Ac.
X $ ISWG*—/Ac.
=
Wastepiles:
?1.0? Ac.
X $ aO0 /Ac.
=
Processing Area/Haul Roads:
a3 Ac.
X $ Zet&*— /Ac.
=
Mine Excavation:
10,olOAc.
X $ afM" /Ac.
= $ oi0Y60
Other:
LAD Ac.
X $ /I /Ac.
= $ day9°o
TOTAL AFFECTED AC.:
Q6Ac.
( TOTAL PERMITTED AC.:
9 ,6' Ac.)
Temporary &Permanent Sedimentation & Erosion Control Measures
Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage
Ac.
b) Positive Drainage
Ac.
X $1,500.00
04
= $ 39, 3` o
SUBTOTAL COST:
$
Inflation Factor
0.02 X SUBTOTAL COST:
$ Sq")II$°D
X Permit Life (1 to 10 years):
/0
INFLATION COST:
$
TOTAL COST = SUBTOTAL COST + INFLATION COST = $ 106,
610
Total Reclamation Bond Cost: $ %0� 70t)0
(round down to the nearest $100.00)
-14- 066d"
h l�eC�S ylv, 700°`' m,

Memo
To: Judy Wehner
From: Zahid Khan -;'-<
CC:
Date: 5/1/2007
Re: North American Emerald Mine Permit, Alexander County, and Yadkin River Basin
Application/PermitM 02-06
The modification of recent submittal dated April 10, 2007 and received in MRO on April 11,2007 with
suspense date for comments May 4, 2007 was reviewed. They need to provide the following additional
information along with Charles comments.
1: To obtain maximum trapping efficiency of sediment traps, keep surface area at peak flow as
large as possible.
2: To improve the efficiency of the principal spillway system, make the cross sectional area of the
riser at least 1.5 times that of the barrel.
3: Please show the Drainage area map of all the basins.
4: Draw basins per scale on erosion and sediment control plan.
A copy of CT's comments is attached for your review.
Please contact me if you need additional information.

North American Emerald Mine
r'
Subject: North American Emerald Mine
From: Charles Gerstell <[e-mail]>
Date: Mon, 30 Apr 2007 11:10:51 -0400
To: zahid Khan <[e-mail]>
Zahid,
I have reviewed the additional information for the modification request submitted
for North American Emerald Mine (02-06) and have the following comments: 1.) The
map remains difficult to read. Many of the items shown on the map are difficult to
see such as the proposed berm along the west side of the mining area. Mr. Williams
needs to find a way to make the berms, diversion ditches, basins, and other items
stand out so a thorough review can be made. The actual location -of proposed one
lane road along the southern perimeter of the mining area is still difficult to
delineate. 2.) Measures must be provided along the western perimeter of the
mining area along the proposed berm construction to prevent off -site sedimentation
damage. Temporary silt fence should be considered. 3.) along the proposed safety berm located adjacent to the maiMeasures must be provided
n haul road leading to d. The proposed silt
the mining area. Temporary silt fence should be considere basins shown along this haul road on sheet 1 will onl itself. The silt fence should be located oy catch flow from the road (east side)
n the outside of the berm
until the slopes of the berm have been permanently stabili
one lane road along the southern perimeter of the min zed. 4.) The proposed
area appears he be located
within the 35-foot undisturbed buffer. Therefore, should this be labeled as an
unexcavated buffer? 5.) Mr. Williams does not label the width of the buffer on
the north side of the previously permitted portion of the rock storage area. This
should be labeled on all relevant map sheets. 6.) Calculation sheets show only
one set of calculations for the proposed silt basins to be located along the haul
road leading to the mining area. Is this because both basins have the same
drainage area? This must be clarified.
7.) The silt basin designed for the additional rock storage area has a perforated
riser. This is no longer a permitted practice. 8.) The temporary construction
entrance must be constructed of 2" to 3" coarse aggregate. Map details must reflect
this requirement. 8.) Some of the diversion ditches leading to silt basins No. 2
and No. 3 at the mining area appear to be located within the undisturbed buffer.
They should be relocated. I did not review the calculations for the proposed
basins. Please let me know if you have any questions regarding this matter.
Thanks,
C.T.
Charles Gerstell - Ch_arles.Gerstellan--mail.nec
North Carolina Dept. of Environment & Natural Resources
Div. of Land Resources - Land Quality Section
610 E. Center Ave., Suite 301
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
of I
4/30/2007 12:48 PM

MINING CHECKLI5T FOR ROUTING
Applicant's Name: Project Name:
Applic./Permit No.: 2-County: Date Received:
Reviewer- I i/l. 1, River Basin Name: l✓�T ��
❑ New ❑ Renewal •i Modification (inside permit boundaries)
❑ Modification (outside permit boundaries) ❑Transfer ❑ Release
❑ Partial Release .°Additional Information ❑ Fee Needed: $
❑ Fee Received: $
route entire application package to.
^a.
Regional Office (2 complete copies; attach the "LQ5 Regional
Office Mining Application Review Checkliet" to one copy and attach h? the DWQ and DAQ
"Mining Application Review Form" to the other copy; send both copies to the Regional Engineer)
Date: Routed I' Reed
❑ Division of Water Resources Date: Routed Reed
❑ NC Wildlife Resources Commission Date: Routed Pcc'd
❑ IJ5 Fish & Wildlife Service Date: Routed Rec'd _
(Only new applications and modification requests that add land to the permit)
Please route first 3 nagce of the application and any location ma_pe for
❑ Division of Parks & Recreation Date: Routed Rec'd _
❑ NC Geological 5urvey Section Date: Routed Reed _
(Only new applications and modification requests that add land to the permit)
❑ Division of Archives & History Date: Routed Rec'd _
(Only new applications)
❑ Other.
Date: Routed
**5u5pen5e Date for Comments:
from receipt)
fn?lease note the following:
Rec'd
(no later than 25 days

R. CARROLL WILLUMS, P.E.
CONSULTING ENGINEER
DESIGN. WATER, SEWER, DRAINAGE - EROSION
4840 N. CENTER ST. TELEPHONE [phone]
HIcxORY, NC, 28601 FAX [phone]
Kristin Mcklin
Assistant State Mining Specialist
Land Quality Section
Raleigh, NC
Re: Permit No. 02-06
North American Emerald Mines
Alexander County
Yadkin River Basin
Dear Ms. Hicklin:
Q)
AND QUgClTygFCT
I will attempt to answer your letter of December 11, 2006 to Mrs. Lynn S. Hill and in the same
order of your letter.
1, It is very difficult to make contact with the Corps of Engineers. I guess they are busy like
everyone elss. I did touch base with them and am enclosing a letter from their office, noting tha t
we do not have a wet land to worry about.
2. The plan sheet shows contours for the new rock storage yard. Two existing ditches should
carry the runoff to the basin with no trouble.
3. The haul road for the water truck is basically half on our side of the property line, but to make
things simple we propose to grade out a one lane drive to the north of the existing road and move
the boundary inside the property line. There were just too many complications in trying to deal
with the neighbors.
4. A small detail is shown for the rock dam at the turn around site.
5. Erosion control measures are shown for the safety berm alon the haul road from the digging
site to the rock yard.
6. The values for the rainfall data were reviewed and revised somewhat. I'm sure you will agree
it would extremely difficult to get two different people to agree on the " C `value in the rational
method.

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,

MINING CHECKLIST FOR ROUTING
�Y.��� I�w�v,c0.v� Project Name: "� , ia,. .<,,.::,. vr�0 k
Applicants Name:
Applic./Permit No..: County: }` �k-� OL&L-f- Date Received: ` (v- C
Reviewer:River Basin Name: \�-
❑ New
❑01
E
'6^
a
.N
d
❑ Renewal ❑ Modification (inside permit boundaries)
rmitboundaries) ❑Transfer ❑Release
4 ) clitional Information ❑ Fee Needed: $
Zion package to:
t
peal Office (2 complete copier; attach the "LQ5 Regional
i Checklist" to one copy and attach tolh the DWQ and DAQ
\vi a —n" to the other co rend both .copies, to the Regional''€ngineer)
Cmos 1 r�c��.7� lcVsr>i Date: Routed' Reed"
' r '
❑ pes Date: Routed Rec
❑ -)-6,,�S l �misoion Date: Routed Reed
Ell, Date: Routed Reed
Hnd modification requerte that add land to the permit)
Pleaoc route first 3 page* of the application and any location maps to:
❑ Division of Parks & Recreation Date: Routed Reed _
❑ NC Geological Survey 5ection Date: Routed Reed _
(Only new applicationr and modification requeetr that add land to the permit)
❑ Division of Archives & History Date: Routed Reed _
(Only new applications)
Date: Routed Reed
❑ Other.
**5u5perioe Date for Comments: (no later than 25 days
from receipt)
)S,Pleaoe note the following:
N i CA Or
41,