02-06 North American Emerald Mine File Pt. 5 Redacted

- Nort 1
h Carolina Departrn NC�ENR
Simons, PG PE ent of Environment and
�ctorand State Geologist Division Of land ResNatural
ources Resources
March 4, 2005
Mr, J. Ronald S
North grnerican ummers
531 Emerald M
Duncan Lane Ines, Inc.
Hiddenite, North Carolina 28636
RE: Permit No.
02 06 / North American E
County / Yadkin Basin erald
Dear Mr. Summers.
Michael F. Easley,
William G. Ross Jr,
The
purpose
crusher of this le at this site in order to
is to clarify
so contingent u crush Y°ur co
Division of upon the follow. rock into company's recent
generated Air Quality to operate -* 1) any into gravel Your compan request to operate
a rock
Department ck material shall be b oiddhtf pinto t thery
or
bra als Been approved to do
pment approvals e obtained red
2y the
he site without prior approval an ) no 0
The issPlease attach this a pproval istin from off -site
uance of a roval letter to m the
regulations.
gulations. The rese nslpeEmit and/or any mod' fxcat on minin future
Y of cornpliance with any a to it does nit for reference.
YOU area a r er, Your pplicable zoninguregula�ons lies zoning
emind
approved to disturbpermitted acreage at this with
is 15.1 acres. site is 94.
Please advise t 6 acres and the
this matter. his office amount of land
at [phone] should you have any questions Concerning
Sincproi,.
F7R W/iw
cc:: Mr- Doug File Miller, pE
nons, pG, PE-"
-and Quality Section 919-
733-4574 I FAX
X' 919-733-2876 _
Division of Land RPS°iirrPS Mail Se Geolo ' rvice Center, Ralei 8icth Survey Section 91
An Equal0 91g 733-3A331 FAx. gh North Carolina 9 733-
PPortunity l AfFrmative 919-71.5- 27699 1612 24231 FAX. 919-733-
Action Emplpyer_ 8$01 I intPr 0900
50% Recycled 11'% Post Co s mter Paper tatP_ q�dlr.ht
nr..u, m

MEMp�AtDUM October27 2004
rp:
File
FRpM:
SuB jEC7.. Brenda M- Harris, Secreta
Notice of
Issuance Of A41ning
fM,ning
rMit
fpepple bstcopy of the
a public he in the AM ttached `IVO
Sent to arin davit tice of
in red Will peep/e whos held, a Of IV
a trance Of Ml b the
h of Y of and ni
Cp. a beside Signed nameshe s On in he Otice o ad,,,.
Ssitional pep Permit,, Was sent
Mr. DOug Miller the pep et at the uance a ple who se to all
ple in the fie who Were '�Mh initials
t Permit"
,� utters.
Was
s "Notice,, en

North Carolina
James D. Simons, P.G., P.E.
Director and State Geolcgist
Certified Mail
Return Receipt Requested
_ r
NCDENR
Department of Environment and Natural Resources
Division of Land Resources
Mr, J. Ronald Summers
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. Summers:
October 27, 2004
7002 3150 0003 7042 2572
Michael Z. Easley, Govemo
William G. Ross Jr., Secrets
Your recent request to have the above referenced mining permit modified has been
approved. The codification s to increase the permitted acreage 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. 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 8, and Reclamation Condition No. 3.
The issuanca 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 we have received the $59,000.00 Assignment of Savings Account, 1 am returning
the $58,500.00 Assignment of Savings ,Account previously held by this office for this site for
your disposal.
As a reminder, your permitted acreage at this site is 94.6 acres and the amount of land
you are approved to disturb is 15.1 acres.
Geological Survey i Land Quality - Geodetic Survey
Division of Land Resources + 1612 Nlail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-?833 \ F;a)<: 919-715-8801 1 Internet: www.dlr.enr.state.nc.us/dIr.htnn
=.n Equai Opportunity \ Affirm2tive action Employer- 5045 Recycled \ 10% Post Consumer Paper

Certified flail
Mr. Summers
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, CPESC
State Mining Specialist
Land Quality Section
FRW/jw
Enclosures
cc: Mr. Doug Miller, PE
Ms. Shannon Deaton - WRC, w/enclosures
Mr. Bradley Bennett - DWQ, w/enclosure
Mr. William Gerringer-Mine and Quarry 3ureau, ,N/o enclosure
File

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 .=
In accordance with the application for :his 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.
Expiration Date
This permit shall be effective from the date of its issuance until March 15, 2010.

Page ,
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 Qualitv 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.
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 !anal and
to preserve the integrity of the natural watercourse or wetland.

a
image -a
a; Erosion and Sediment Control
A. Adequate mechanical barriers including, but not limited to diversions, earthen
dikes, silt check dams, silt 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 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.
5. Marking Boundaries
All affected area boundaries (15.1 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 surfade blasting:

n-
Page 5
Ground Vibration With MonitoriM
In all blasting operations, the maximum peak particle velocity of any component
of ground motion shall not exceed Figure 1 (below) at the immediate location of
any regularly occupied building outside of the permitted area such as a dwelling
house, church, schccl, r;-ubflc, commercial or institutional building.
)J.3
2.0
+s
•.A
3.3
.).
J.0
I.s
3-1
). -
).=
a:a :r Vibration=raGuanc �, N�
S'u
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)Z D5 = D
W vz
V = 160(DS)-' 6
W = Maximum charge weight of explosives per delay period of 3.0 milliseconds
or more (pounds).
D = Distance from the blast site, to the nearest inhabited building not owned or
leased by the mine operator (feet).
Dr = Scaled distance factor.
V = Peak Particle Velocity (inches per second).
The peak particle velocity of any component shall not exceed 1.0 inch per
second, for the purposes of this Section.

Page
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:
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
D. 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/'N0.33)-1.2
P = 20 x log (U/2.9x10-9)
Confined Air blast/Overpressure (dBL)
for quarry situation:
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 blastloverpressure shall not exceed 129 decibels, for the purposes of this
Section.

Page
�. 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 Report n
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 iblining 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.

�3ge 3
I. 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 even,
reasonable effort to incorporate the studies' recommendations into the
production blasting program.
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.
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. Adjacent 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.

Page 9
C. For the purposes of this permit, the Division of Land Resources considers the
following materials to be "mining refuse" (in addition to these specifically !fisted
under G.S. 74-49 (14) of the N.C. dining 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
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 $59,000.00
Assignment of Savings Account, 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 ! istcri shall be
granted access to the site to determine the presence of significant
archaeological resources.
B. 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 1'
APPROVED RECLAMAT'ON PLAN
The dining Permit incorporates this Reclamation Plan, the performance of which is a condition
on the continuing validity of that iNlining 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.
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..
2. 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.

3.
4.
Page '.
C. The processing, stockpile, and other disturbed areas neighboring the mine
excavation shall be leveled and smoothed.
D. Compacted surfaces shall be disced, subsciled or otherwise crepared 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.
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 ,Alildlife biologist with the N.C.
Wildlife Resources Commission to enhance post -project wildlife habitat at the site.
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, is hereby modified
this 27 th day of October, 2004 pursuant to G.S. 74-52.
James D. Simons, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural ,Resources

NOTICE OF ISSUANCE OF
MINING PERMIT
You have previously expressed an interest and/or are listed as an adjoining landowner
in the application to mcdify this mining permit filed by North American Emerald Mines, Inc.'o
conduct mining activities off SR 1491 in Alexander County. The mining permit (no. 02-06) was
modified on October 27, 2004.
North Carolina law allows persons aggrieved by the issuance of a mining permit to
contest the decision by filing a petition for a contested case in the Office of Administrative
Hearings pursuant to N.C.G.S. 15OB-23 of the Administrative Procedure Act (APA).
If you believe that you are an aggrieved party within the meaning of the APA and NC
General Statute 74-61, a petition for a contested case must be filed in the Office of
Administrative Hearings within thirty (30) days of the mailing of this notice to you.
If you file a contested case petition, it must be in writing and in the form prescribed by
N.C. General Statutes 150E-23. File the original petition and one copy with the Office of
Administrative Hearings, 671.1 .'Mail Service Center, Raleigh, NC 27699-6714.
Any questions about filing a petition may be directed to the Clerk of the Office of
Administrative Hearings by telephoning [phone].
You must serve the .Department of Environment and Natural Resources by mailing
copy of the petition to Mr. Daniel A. Oakley, Registered Agent and General Counsel,
Department of Environment and Natural Resources, 1601 Mail Service Center, Raleigh, NC
27699-1601.
Jame D. Simons
Director
Division of Land Resources
North Carolina Department of
Environment and Natural
Resources
This notice was mailed on & . 7/� y
r
�CiLu-O
renda Harris
iMining Program Secretary

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist
October 26, 2005
Certified Mail
Return Receipt Requested
7002 3150 0003 7053 8099
Mr. William Duncan
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. Duncan:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
Your recent request to have the above referenced mining permit modified has been
approved. The modification is to amend the Blasting Conditions of Mining Permit No. 02-06 to
limit ground vibration to twenty-five per cent of Operating Condition No. 8A and to require pre -
blast warning signal to the two adjacent property owners nearest the blasting. A copy of the
modified permit is enclosed. Other conditions of the permit, including the expiration date, mine
name, permitted acreage and permit number, remain the same as before the modification.
Please review the modified permit and contact Ms. Judy Wehner, Assistant Mining
Specialist, at [phone] should you have any questions concerning this matter.
Since r ly,
Floyd R. Williams, PG, CPG, CPESC
State Mining Specialist
FRW/jw Land Quality Section
Enclosures
cc: Mr. Zahid Kahn
Ms. Shannon Deaton - WRC, w/enclosure
Mr. Bradley Bennett - DWQ, w/enclosure
Mr. William Gerringer-Mine and Quarry Bureau, w/o enclosure
Mr. Douglas Eisele, Esq. — Eisele, Ashburn, Greene, & Chapman, PA, PO Box 1108,
Statesville, NC 28687-1108, w/ enclosure
Ms. Anita LeVeaux, Esq. — Attorney General's Office, w/ enclosure
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

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. BA and require pre -blast warning signal to two property owners.
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.
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.

Page 4
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, silt check dams, silt 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 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.
Marking Boundaries
All affected area boundaries (15.1 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.

N1
Page 5
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 86. 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:
/0
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.
10.0
11
O.,
0.s
o.s
O.r
HE
O
®tact vibration Frequency. Hz
Flgure t Alremacsvri blasting te,&l cnrena
(Sourca moOYfiear /ram figure S-v, sung a, of Priin®s R1350?:
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
W1l2
V = 160(Ds)-l6

Page 6
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:
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
D. 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
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).

Page 7
The air blast/overpressure shall not exceed 129 decibels, for the purposes of this
Section.
E. 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:
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.

I. 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.
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 Screeninq
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.

Page 9
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
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.

Page 10
15. Bonding
The security, which was posted pursuant to N.C.G.S. 74-54 in the form of a $59,000.00
Assignment of Savings Account, 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
1. 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..
2. 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.
stockpile,
leveled and
dd then disturbed areas neighboring the mine
excavation shall
D. Compacted surfaces shall be disced, subsoiled or otherwise prepared before
E.
F.
revegetation.
No contaminants shall be permanently disposed of at the mine site.
disposal of waste shall be in accordance with Operating Conditions
through D.
collection of noxious or foul
The affected land shall be graded to prevent the
water.
On -site
Nos. 12.A.
3. Revegetation Plan:
the
evegeta
After site preparation, all disturbed areas District
str ct shall
be r v tgon etat
st with therNat Ral ion
Resoutrces
Plan approved by Mr. Dan McClure,
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:
ultaneously with mining to the extent feasible. In
Reclamation shall be conducted sim
any event, reclamation shall be initiated as soon as feasible after completion or
segment under permit. Final reclamation, including
termination of mining of any mine
revegetation, shall be completed within two years of completion or termination of
mining.
This permit
and March
74-52.
issued March 15, 2000 and modified March 13, 2002, October 27, 2004
4, 2005, is hereby modified this 26th day of October, 2005 pursuant to G.S.
LM
Dzzt.��_
James D. Simons, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources

TRANSMISSION VERIFICATION REPORT
TIME :
11/22/2006 10:18
NAME :
NC DENR DLR
FAX :
9197158801
TEL :
9197333833
SER.* :
xxxxxxxxxxxx
DATEJIME
11/22 10:14
FAX NO./NAME
918286357080
DURATION
00:84:02
PAGE(S)
14
RESULT
OK
MODE
STANDARD
ECM

i
Natural
North Carolina Departmoene of Environment QalitY Section
Mining Program
urces
Division of Land Res
1612 Mail Service Center, Raleigh,
Carolina 27699
North C715-8aroaro
[phone] Fax: ( )
FAX COVER SHEET
aas�_1e35'- 07050
FAX NUMBER TRANSMITTED TO: n
To: 0 Of
N� � J M tis�/A
From:
Date:
iJ
COMMENTS:
RECEIVE ALL PAGES, PLEASE TELEPHONEMI
US IMMEDIATELY AT [phone]:
,IF YOU DO NOT

Erosion arc Sediment Comm!
�. Adequate mechanical barriers nc;uding, but ^ct imited .c-iversicr.s,
dikes, silt check dams, silt r etarding structures, rip rap pits, or ditches sc1i ce
provided in the initial stages of any land disturbance and maintained to preveni
sediment from discharging onto adjacent suafaca areas or into acy lame, 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. -lining activities associated with the addition of the haul road and overburcen
disposal area, including the installation and maintenance of all associated
erosion and sediment control measures, shall be conducted as indicated on the
mire maps received by the Land Quality Section on September 23, 2002.
5. Adarkina Boundaries
All affected area boundaries (15.1 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 anv 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 Drainace
The affected land shall be graded so as to prevent collection of pools of water that are,
cr ikely to become, noxious cr foul. Necessary structures such as drainage ditches or
conduits shall be constructed or installed when required to Prevent such conditions.
8. Blastira
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
procert`/ from surface blasting;

A. Grcund Vibraticn With N,Icnitcring: -F
In ail blasting operations, _he maximum peak particle veicc;ty �f ary compcnent
of Ground motion shall not exceedA7. figure 1 (below) at the immediate ccatibn cf
any regularly occupied building outside of the permitted area such as a dwelling
house, church, school, cr public. �cmmerciai cr institutional building.
)0.]
).a
7-2
a:a3c Vibrocron
(LiCCIfCt-� .^. JCLiaBL' �fCf^ .'tC�fn'a_ �. �c:."9:3.1 9f''✓fi.�:.. .. .. ,�, -.
B. 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)Z Ds = D vz
V = 160(D,,)_1'3
W = Maximum charge weight of explosives per delay period of 3.0 milliseccrds
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).
The peak particle velocity of any component shall not ;Geed 1.0 inch per
second, for the purposes of this Section.

C. Air blast With Vlcn!tcr!nq:
Air blast overpressure resulting from surface blasting shall ,ct =xceed l29
decibels linear (dBL) as measured at the immediate location of any regular;,/
occupied 'building not owned or leased by the operator outside of the permiited
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:
Lower Frequency Limit of fvlax Level,
N/leasuring Svstem 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
D. Air blast Without N/Ionitoring:
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):
P = 20 x log (U/2.9x10-9)
Confined ,-Nir blast/Overpressure (dBL)
for quarry situation:
A=P-35
U = Unconfined air overpressure (pounds per square inch).
W _ Maximum charge weight of explosives per delay period of 3.0 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.

J'ge�
_. Record Keecinc:
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 intervai; amouni
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:
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. Flyrock Prevention:
The operator shall take all reasonable precautions to ensure that 11yrbck 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 Recorting:
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:
1. 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, documlent
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 maings cr any
nducted at the mine site in response to an exceedence or a
seismic studies co
level allowed by these blasting conditions. Tie operator, shall make every
reasonable effort to incorporate the studies' recommendations .nto the
production blasting program.
J. Notice:
The operator shall, when requested by the Department, give 24-hour advance
Regional office prior to any blast during a
notice to the Land Quality Section
period for which notice is requested.
g �/isual public thoroughfares ;c
existing 9 public. Additional screening methods, such as
vegetation shall be maintained between the mine an p
screen the operation from the p appropriate by the
constructing earthen berms, shall be employed as deemed app P
Department.
10. adiacent Property Buffers
shall be maintained between any
Sufficient buffer (minimum of 50 foot undisor right-of-way to protect adjacent property -
excavation and any mining permit boundary
i-iichwal
A, physical barrier consisting of a fence or earthen berm, etc., shall be maintained
around the perimeter of any highwall.
12, RefuSl
generated outside of the
A. No on -site disposal of refuse or other solid waste that is
permit
mining permit area shall be allowed within the boundaries of the mining
area unless authorization to conductinagesaident dispnd oe Land Quality Section -al has first been ,
."ra^,
both the Division of Waste ME
Department of + nvironment and Natural
d reclamation amation plan.ne method of disposal
shall be consistent with the app
S. Mining refuse as defined by G.S. 74-49 (14) of The Mining Act of 1971
ivitymust be
generated on -site and directly associated with the mining activity may t
roved by the Division of Waste
disposed of in a designated refuse area. All other waste products
disposed of in a disposal facility approved
acids, solvents or their storage containers
Ulanagement. No petroleum products,
or an/
other material that may be considered hazardous shalt be disposed of
within the permitted area.

Parcel Search
Page 1 of 1
Parcel Owner: (Last First ex. Smith
John) --------] Physical Address: (ex. 100 first
Account Number: (ex. 0112345) st)�
Sequence Number: (ex. 12345)
Assessed Value > (ex. 20000)
t�Assess_ed Value < (ex. 30000)
Map Number: (ex. a12b) __
� t
Lot (ex. 0000a) I
Acres: (ex. 200 for 2 acres) Subdivision (ex. Dogwood)
Submit Parcel query
http://maps.co.alexander.nc.us/sdx2005/parcelqueryforin.hhn?0=& 1=&2=&3=&4=&5=&6... 6/8/2005

NCDENR MRO Fax:[phone] Aug 5 2005 12:26 P.02
MWH
MONTGOMORYWATSON HARZA
T
2002
JANUARY
8 M
T
W
T
F S
H
2
3
4 6
6 7
8
9
10
11 12
13 14
15
16
17
16 19
20 1
1
22
23
24
25 26
27 2
29
30
37
FEBRUARY
5 M
T
W
T
F S
1 2
6 4
6
6
7
8 9
10 11
12
13
14
16 16
17 16
19
20
21
22 23
24 25
26
27
28
MARCH
S M
T
W
T
F. 5
1 2
3 4
6
6
7
8 9
10 11
12
13
14
15 16
17 13
19
20
21
22 23
24 25
26
27
28
29 30
31
APRIL
8 M T W T F 5
1 2 8 4 5 6
7 8 9 10 11 12 13
14 16 16 17 18 19 20
21 22 23 24 26 26 27
28 29 30
MAY
3 M
1
W
1
F
3
1
2
3
4
5 6
7
8
9
10
11
12 13
14
15
16
77
18
19 20
21
22
23
24
25
26 ®
28
29
30
31
JUNE
3 M
T
W
T
F
S
2 3
4
5
6
7
1
6
9 10
11
12
15
14
15
16 17
18
19
20
21
22
23 24
25
26
27
28
29
30
JULY
S M
T
W
T
F
3
1
2
3
0
5
6
7 8
9
10
11
12
16
14 15
16
17
18
19
20
21 22
28
24
25
26
27
28 29
30
31
AUGUST
S M T W T F 5
1 2 3
4 5 6 7 8 910
11 12 13 14 16 16 17
13 19 20 21 22 23 24
25 26 27 26 29 36 31
SEPTEMBER
S M T W T F S
1® 3 4 5 6 7
6 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
OCTOBER
3 M
T
W
T
F 5
1
2
3
4 6
6 7
8
9
10
11 12
13 14
15
16
17
18 19
20 21
22
23
24
26 26
27 28
29
30
31
NOVEMBER
8 M
7
W 7
F S
1 2
3 4
5
6 7
8 9
10 11
12
13 14
15 16
17 15
19
20 21
22 23
24 25
26
27 ®
29 30
DECEMBER
3 M
T
W T
F S
1 2
3
4 5
6 7
8 9
10
11 12
13 14
15 16
17
18 19
20 21
22 23
24
0 26
27 28
29 30
31
Delivering loin ova five Projects and Solutions Worldwide

`IPYorth Carolina Department of Environment and Natural Resources,
dR OR nn Division of Land Resources, Land Quality Section
MINE INSPECTION REPORT
LAND QUALITY SECTION (PERMITTED MINE)
1. MINE NAME 2. MINING PERMIT #
3. OPERATOR 4. COUNTY
5. ADDRESS
6. PERMIT EXPIRATION DATE >< 7. RIVER BASIN
8. Person(s) contacted at site
9. Was mine operating at time of inspection? R'"Yes H-No" , 10. Pictures? ❑ Yes ❑ No
11. Date last inspected: z / ,, /oc 12. Any mining since last inspection? 2�Yes ❑ No
13. Is the mine in compliance with the Operating Conditions of the Permit? ❑ Yes 0`No
If no, explain:
, a.( •
-
r - o
14. Is the mine in compliance with the Reclamation Conditions of the Permit? WPYes ❑ No
If no, explain:
15. Did any of the above deficiencies result in offsite damage? ❑ Yes ®`No If yes, describe the
type and severity of the damage:
16. Corrective measures needed and/or taken::
c -
s+•:a. Al' ,A P...AP. if' G... ',...:_a«-- ..,.,„ .3 �, h-i ..•t. l..+.c. a.-H F...:V"i
17. Other recommendations and comments:T11,„ .
.M.l.�f\T•.iT'"Kt. 2... 4:, 31 Lv , 1. y'•-_u y.! i'.�`xi .Y.q.r Y v.%%.
18. Is the Annual Reclamation Report +/-map accurate? ❑ Yes ❑ No (Explain) Q7Not Reviewed
19. Follow-up inspection needed? H"Ves ❑ No Proposed date
20. No. of additional pages of Inspection Report c.:. 21. Copy of Report -sent to operator
INSPECTED BY: t°: ,.,.:: , •, , ; , : (date)
DATE
Telephone No: (-_ )
White copy to file Yellow copy to operator Pink copy to Mining Specialist 10197

I
rYwd: Narth American Emerald Alexander county]
Subject: [Fwd: North American Emers
Date: Thu, 21 Mar 2002 10:20:39 -05
From: Tracy Davis <tracy.davis@ncma
Organization: NC DENR
To: Doug Miller <Doug.M 11er@ncn
CC: Mell Nevils <Mell.Nevils@ncma
Judy Wehner <Judy. Wehner@nc
Doug, excellent investigation and repor
had talked to you today and that you we
their permit/map to include and address
usage issue. I concur that this is a g
have everything covered. Thanks again
site (by the way, did you pick us up an
Subject: Re: North American Emerald
Date: Thu, 21 Mar 2002 10:16:08 -05C
From: Charles Gardner <Charles.Gardn,
Organization: Division of Land Resources
To: Doug Miller <Doug.Miller@ncm
CC: Judy Wehner <Judy.Wehner@ncl
"Tracy E. Davis, P.E." <Tracy.D:
Mell Nevils <Me11.Nevils@ncmai:
Many thanks, Doug.
Doug Miller wrote:
MINING
SLIPS
qlg oa- 31f
COARI"T��v" L "
> I inspected this site yesterday to do j�+t IIIII-`
> response to several complaints that we
> Corey Priddy and I inspected the site ,.y
�•sy wJ.�u aaatx Hann or Yllb11C
> Water Supply.
> Energy United operates a water intake downstream of this mine some
> distance(I do not know how far). The operator at the plant has noticed
> a change in the amount of chemicals that it takes to process there water
> in the last two years and thought the mine was the problem. Though I
> did not see how the mine could be affecting the water, I invited Mark to
> inspect the mine with us so he could see for himself or spot something
> that might be affecting the water that I did not notice. After the
> inspection he concurred that it was very unlikely that the mine could
> affect the water supply.
> I also inspected for fly rock. During the inspection we walked the
> entire perimeter of the mine. I also walked over about a quarter acre
> of the Wooten property in the vicinity of the active mine area to see if
> I could find fly rock. Fred Walker had stated that he had picked up a
> 55# rock.. I saw no impact points in the trees(though no leaves had
> sprouted yet). A did not see fresh rock along the road between the
> property and saw no readily visible signs of a significant fly rock
> incident. I found one small rock in the road that was of the same type
1 of 3
3/21/2002 10:21 AM

f5M: N9rth American Emerald Alexander county]
> as the rock in quarry and appeared fresher than the surrounding gravel
> on their side of the road near the entrance of the mine where they
> control both sides of the road. The blaster said they had had some
> problem but used the guards and appropriate blasting procedure to
> inspect the area prior to a blast. They have recently bought mats to
. > place over the blast to help control this. I emphasized that any fly
> rock was a problem and any fly rock that left their property was a
> serious problem that required very specific action in their permit. I
> will reemphasize this in the inspection report.
> I did find some other violations.
> 1) They have installed a pump at the creek to pump water to the site so
> they can wash dirt off the rock face so they can follow the seams they
> need to . I do not think they have any discharge and Mr. Hill stated
> the water simply was absorbed in the soil or went to the traps. Water
> Quality has been advised of this and are checking to see if a permit
> will be required.
> 2) They are using some old roads to drive guard patrols around the
> property. -These roads were washing in one area, sending sediment
> towards the stream which is an HQW. They were advised to install water
> bars and gravel gravel the road such that it would not wash. We
> received assurances that this would happen.
> Doug Miller - [e-mail]
> North Carolina Dept. of Environment & Natural Resources
> Div. of Land Resources - Land Quality Section
> 919 N. Main St.
> Mooresville, NC 28115
> Ph: [phone] Fax: [phone]
Charles Gardner, P. G P E. -4charles.gardner&cmail net> 1
State Geologist and Director 1
N.C. Division of Land Resources
Department of Environment and Natural Resources
2 of 3
3/21/2002 10:21 AM

ltiorth American Emerald Alexander county
Subject: North American Emerald Alexander county
Date: Thu, 21 Mar 2002 10:12:33 -0500
From: Doug Miller <Doug,[e-mail]>
Organization: NC DENR - Mooresville Regional Office
To: "Charles Gardner, P.G. P.E." <[e-mail]>
CC: Judy Wehner <Judy. [e-mail]>,
"Tracy E. Davis, P.E." <[e-mail]>
I inspected this site yesterday to do an annual mine inspection and in
response to several complaints that we have had about the operation.
Corey Priddy and I inspected the site along with Mark Hahn of Public
Water Supply.
Energy United operates a water intake downstream of this mine some
distance(I do not know how far). The operator at the plant has noticed
a change in the amount of chemicals that it takes to process there water
in the last two years and thought the mine was the problem. Though I
did not see how the mine could be affecting the water, I invited Mark to
inspect the mine with us so he could see for himself or spot something
that might be affecting the water that I did not notice. After the
inspection he concurred that it was very unlikely that the mine could
affect the water supply.
I also inspected for fly rock. During the inspection we walked the
entire perimeter of the mine. I also walked over about a quarter acre
of the Wooten property in the vicinity of the active mine area to see if
I could find fly rock. Fred Walker had stated that he had picked up a
55# rock.. I saw no impact points in the trees(though no leaves had
sprouted yet). A did not see fresh rock along the road between the
property and saw no readily visible signs of a significant fly rock
incident. I found one small rock in the road that was of the same type
as the rock in quarry and appeared fresher than the surrounding gravel
on their side of the road near the entrance of the mine where they
control both sides of the road. The blaster said they had had some
problem but used the guards and appropriate blasting procedure to
inspect the area prior to a blast. They have recently bought mats to
place over the blast to help control this. I emphasized that any fly
rock was a problem and any fly rock that left their property was a
serious problem that required very specific action in their permit. I
will reemphasize this in the inspection report.
I did find some other violations.
1) They have installed a pump at the creek to pump water to the site so
they can wash dirt off the rock face so they can follow the seams they
need to . I do not think they have any discharge and Mr. Hill stated
the water simply was absorbed in the soil or went to the traps. Water
Quality has been advised of this and are checking to see if a permit
will be required.
2) They are using some old roads to drive guard patrols around the
property. These roads were washing in one area, sending sediment
towards the stream which is an HQW. They were advised to install water
bars and gravel gravel the road such that it would not wash. We
received assurances that this would happen.
Doug Miller - [e-mail]
1 of 2
3/21/2002 10:20 AM

Re: North.lmerican Emerald Alexander county
a2 -6k
Subject: Re: North American Emerald Alexander county
Date: Thu, 21 Mar 2002 10:16:08 -0500
From: Charles Gardner <[e-mail]>
Organization: Division of Land Resources
To: Doug Miller <[e-mail]>
CC: Judy Wehner <[e-mail]>,
"Tracy E. Davis, P.E." <[e-mail]>,
Mell Nevils <[e-mail]>, Tun Simons <[e-mail]>
Many thanks, Doug.
Doug Miller wrote:
> I inspected this site yesterday to do an annual mine inspection and in
> response to several complaints that we have had about the operation.
> Corey Priddy and I inspected the site along with Mark Hahn of Public
> Water Supply.
> Energy United operates a water intake downstream of this mine some
> distance(I do not know how far). The operator at the plant has noticed
> a change in the amount of chemicals that it takes to process there water
> in the last two years and thought the mine was the problem. Though I
> did not see how the mine could be affecting the water, I invited Mark to
> inspect the mine with us so he could see for himself or spot something
> that might be affecting the water that I did not notice. After the
> inspection he concurred that it was very unlikely that the mine could
> affect the water supply.
> I also inspected for fly rock. During the inspection we walked the
> entire perimeter of the mine. I also walked over about a quarter acre
> of the Wooten property in the vicinity of the active mine area to see if
> I could find fly rock. Fred Walker had stated that he had picked up a
> 55# rock.. I saw no impact points in the trees(though no leaves had
> sprouted yet). A did not see fresh rock along the road between the
> property and saw no readily visible signs of a significant fly rock
> incident. I found one small rock in the road that was of the same type
> as the rock in quarry and appeared fresher than the surrounding gravel
> on their side of the road near the entrance of the mine where they
> control both sides of the road. The blaster said they had had some
> problem but used the guards and appropriate blasting procedure to
> inspect the area prior to a blast. They have recently bought mats to
> place over the blast to help control this. I emphasized that any fly
> rock was a problem and any fly rock that left their property was a
> serious problem that required very specific action in their permit. I
> will reemphasize this in the inspection report.
> I did find some other violations.
> 1) They have installed a pump at the creek to pump water to the site so
> they can wash dirt off the rock face so they can follow the seams they
> need to . I do not think they have any discharge and Mr. Hill stated
> the water simply was absorbed in the soil or went to the traps. Water
> Quality has been advised of this and are checking to see if a permit
> will be required.
> 2) They are using some old roads to drive guard patrols around the
> property. These roads were washing in one area, sending sediment
1 of 2 3/21/2002 11:17 Ah

Re: NorthAm = Emerald Alexander wunty
> towards the stream which is an HQW. They were advised to install water
> bars and gravel gravel the road such that it would not wash. We
> received assurances that this would happen.
> Doug Miller - [e-mail]
> North Carolina Dept. of Environment G Natural Resources
> Div. of Land Resources - Land Quality Section
> 919 N. Main St.
> Mooresville, NC 28115
> Ph: [phone] Fax: [phone]
Charles Gardner. P.G. P.E. <charles P—ardner@a ncmail.net>
State Geologist and Director
N.C. Division of Land Resources
Department of Environment and Natural Resources

Permitted Active and Inactive Mines in NC
Subject: Permitted Active and Inactive Mines in NC
Date: Thu, 24 Jan 2002 11:47:14 -0500
From: Tracy Davis <[e-mail]>
Organization: NC DENR
To:[e-mail]
Ed Jacobson [phone]:
Per your request, attached is an Excel file that contains all the
current information we have on active and inactive permitted gemstone
mining operations in NC. Let me know if you have any questions or need
clarification.
Thanks. Tracy Davis
Name: GEMSTONES.xls
Sq GEMSTONES.xls Type: Microsoft Excel Worksheet (application/x-msexcel)
Encoding: base64
Tracy E. Davis, P.E. <Tracy.Davis(@,ncmail.net>
State Mining Specialist
Division of Land Resources
NC Dept. of Environment and Natural Resources
I of 1 1/24/2002 11:47

Permit No.:
Mine Name:
County:
Owner:
Region:
Contact Person:
Street Address:
City:
State:
Zip 5:
Zip Ext.:
Phone:
02-06 Hearing Date:
NORTH AMERICAN EMERALD h Issue Date: 03/15/2000
ALEXA Expiration Date: 03/15/2010
NORTH AMERICAN EMERALD M Total Acres Permitted: 14.02
4.00 Date Denied:
JAMES KING HILL JR
1475 GOBLE ROAD
HIDDENITE
NC
28636
828-635-5718
Status: A
Appl. Rec'd Date: 07/06/1999
Permit Revised Date:
Release Date:
Next Insp:
Last Insp:
Last NOD:
Last NOV:
No. Insp./Yr.:
No. Insp. to Date:
Commodity Code: GS

Ac,Dist Tailings -Annual:
Ac Dist Stockpile -Annual:
Ac Dist Wastepile-Annual:
Ac Dist Processing -Annual:
Ac Dist Active Mine-Annua:
Ac Dist Total -Annual:
Ac Reel Tailings -Annual:
Ac Reel Stockpile -Annual:
Ac Reel Wastepile-Annual;
Ac Reel Processing -Annual:
Ac Reel Active Mine-Annua:
Ac Reel Total -Annual:
Ac Dist Tailings-Cumm:
Ac Dist Stockpile-Cumm:

Ac=Dist Wastepile-Cumm:
Ac Dist Processing-Cumm:
Ac Dist Active Mine-Cumm:
Ac Dist Total-Cumm:
ARR Rec'd Date:
Bonded Acreage:
14.02
Bond Amount:
58,500.00
Bond Type:
A01
Latitude:
35.9131
Longitude:
-81.0742
Verify:
Quadrangle:
River Basin:
YADKIN PEE DEE

Central Off. Comments:
Regional Off. Comments:

[Fwd: Miner sees green as he finds ...inston Salem Joumal - Journal Now]
NORTH CAROLINA &A-EW!
Davidson
DavieNadkin
Federal Government
State Government
Surry/Stokes
Watauga/Ashe
Wilkes
LOCALNEWS
by WIrtstan-Sallem author
Davis Miller
Fri, Jan 18, 2002
Miner sees green as he finds emerald that puts N.C.
INSIDE LOCAL NEWS back on gemstone map
SECTIONS
AP Wire
Business
Classifieds
Corrections
Entertainment
Front Page
Living
Local News
Obituaries
Opinion
Special Reports
Sports
Weather
SERVICES
Contact Us
E-mail Updates
Home Delivery
Join Our Panel
Place an Ad
Search Our Site
SPECIAL COVERAGE
THE ASSOCIATED PRESS
HIDDENITE -- The gem miner who uncovered what he thought was an emerald of
a lifetime in Alexander County appears to have found an even bigger one.
Jamie Hill, who found an 88-carat emerald in 1998, said he and his digging team
discovered two bright green emeralds last weekend - one of which may exceed 100
carats.
"I caught my breath after an hour or two," Hill said from the dig site Wednesday.
Gem experts who converged on Hill's mine this week said that his latest finds
compare with the finest emeralds in the world because of their brilliant green color,
large size and formation - independent of other crystals and not imbedded in rock.
"This discovery puts America on the map in terms of gem -quality emeralds," said
Antoinette Matlins, a Vermont gemologist and the author of several books on
gemstones.
"The only question is, how many more are there?" Matlins said.
The crystals are in a narrow opening in the rock, shining bright green amid a
collection of quartz.
The larger one is at least 100 carats, the other 35 to 40 carats, Matlins estimated.
It's impossible to put a value on the emeralds until experts inspect them, Matlins
and the other experts said.
A 59-carat emerald found in Hiddenite in 1970 fetched $200,000 after Tiffany's cut
it down to the 13-carat Carolina Emerald.
The rough 88-carat emerald found by Hill in 1998 was cut into two polished gems
of 18.8 carats and 7.8carats. The 7.8-carat emerald, called the Carolina Prince,was
sold in 1999 to a private investor for $500,000.
Other experts at the site Wednesday included geologists Ronald Crowson of Geo
Solutions in Raleigh and Jim Hurtak of the New York Academy of Science.
Hill found the gems at a former public mine he owns, just feet from the spot where
he made his 1998 find.
Click
our S1
diriec
YJ
sue;,
Call Bet
or dick to
He resumed his searching only last week after a two-year hiatus while he obtained
commercial -mining permits and raised money for mining equipment.
Hill is waiting for gem experts from the Smithsonian Institution to arrive to study
them. After he extracts them, he'll give them to a series of experts to evaluate
before they're cut down and marketed.
Alexander County's reputation as the premier gem -producing site in the United
Er
of 3
1/22/2002 10:27 AM

Mountains yield more gems
Subject: Mountains yield more gems
Date: Fri, 18 Jan 2002 14:05:23 -0500
From: Susan Edwards <[e-mail]>
Organization: DENR - DIVISION OF LAND RESOURCES - LAND QUALITY SECTION
To: Charles Gardner <[e-mail]>, Mell Nevils <[e-mail]>,
Jim Simons <[e-mail]>, "David H. Ward" <[e-mail]>,
"Tracy E. Davis, P.E." <[e-mail]>,
Judy Wehner <[e-mail]>, Chris Hite <[e-mail]>,
Jim Leumas <[e-mail]>,
Caroline Medlin <[e-mail]>,
Hope Thompson <[e-mail]>,
Stephanie Lane <[e-mail]>,
Susan Edwards <[e-mail]>,
Tabitha Brown <[e-mail]>, Tami Idol <[e-mail]>,
Dan Sams <[e-mail]>, Floyd Williams <F1oyd.Williams@,ncmail.net>,
John Holley <[e-mail]>, Toby Vinson <[e-mail]>,
Matt Gantt <[e-mail]>, Doug Miller <[e-mail]>,
Richard Phillips <[e-mail]>
htto://www.newsobserver.com/fridav/news/nc/Storv/9045171)-903415c html
0 SeCHO
SEARCH AR
_
Text Archh
NEWS •; . r , ,
Letters to the F
Subscribe to TI
I Triangle ♦NC P Nation/World I Columnists F Editorials
.L I
- — - -- - - - - - — - - - - -
Place a Displal
- -
News ShOrtCUtS
FRIDAY :news : nC Ink
Place a ClassN
Contact
Published: Friday, January 18, 2002 4:15 a.m. EST
The Ni
r
About The N&(
® Top news,
weather and
Mountains yield more gems
F
movie times
in your palm.
Alexander man finds two emeralds that may be worth millions
News, movie
times and
} in
B JERRY ALLEGOOD, Staff Writer -
Y
FEB. Zit - II
more your
mailbox.
HIDDENITE - An Alexander County man who friendlyAND
DAIFICII CS
CONFLNE
CLICK F@
rocked the gem world with an emerald he ® =se
-'
CURRENT:
discovered three years ago has uncovered
Mostly cloudy 48
"F
additional spectacular stones that are drawing
gem experts and geologists to the North Carolina
TODAY: High 51°F; Low
mountains. subscribe to our e-mail
34 *F. Cloudy
lists
TOMORROW: High
® get news, weather,
Jamie Hill said Thursday that his discovery of two movies on your PDA
447; Low 36'F. Heavy
huge crystals last weekend -- one of which may
rain and cool.
exceed 100 carats -- shows that the 88-carat gem
70ne d
he found at his mine in 1998 was not a fluke.
bsci
Ex -workers sue over
mercury
"If that one didn't make me a rock star, this one will," he said in a telephone
_
interview.
1 of 3 1/22/2002 10:14 A

Moyntains yield mom gems
mountains yiew more
gems
Shopping
Camp
He found the stones Saturday embedded in a rock formation and left them in
neighbors get
t live -fire
place until they could be studied and carefully excavated. The largest is a dark
--
preview
green hexagon- shaped crystal nearly 2 inches in diameter and the other nearby
j
Snyder has questions for
is about 3/4 inch in diameter.
Current t
Antoinette Matlins, a gem expert from Vermont, who traveled to Hiddenite to
founder hog -waste spill
observe the crystals in their natural setting, agreed that the gems appeared to
Wedding:
be large and clear, characteristics that could enhance their worth. The value
e-mail
can't be fully assessed until the stone is cut and inspected, she said, but she
announcer
estimated they could be worth millions.
She said the color and clarity -- "like looking through green water" -- matches
Travel
gems found anywhere in the world.
> Travel B
r Travel D
"This could be top gem," she said.
Hill said he set off explosives that opened up caverns in a rock dome and found
Personal:
the two large gems near the entrance. Electronic studies of the rock formation
people2l
indicate the site is honeycombed with features that could hold many more
valuable gems, he said.
-_
"We're just getting started," he said.
Jobs:
• Post yO1
North Carolina emeralds are considered particularly valuable, sometimes
. Search '
drawing 20 times more than comparable stones from Colombia, experts said.
, Jobs at
Hill bought the abandoned mine in 1997 and began excavating the 100-acre site
& Observe
while seeking investors. The 88-carat emerald was cut into two polished gems
of 18.8 carats and 7.8 carats. The smaller, "The Carolina Prince," was sold in
Cars:
1999 to a private collector for $500,000 -- or about $64,000 a carat.
. Find a ca
According to Hill, experts from the Smithsonian Institution are scheduled to visit
Real Estal
the mine in Hiddenite next week.
. Commen
Matlins, who has written books about gem stones, said Hill's mine has "put
Properties
North Carolina on the map" for gems and could lead to development of a major
• Find an c
mining operation in the state.
. Apartmei
Hill said people usually think gems and precious stones come from exotic places
in other parts of the world.
—_
"We have some of the finest in the world right here," he said.
Staff writer Jerry Allegood can be reached in Greenville at [phone] or
[e-mail].
Feedback 11 Parental Consent 11 Privacy Policy 11 User Agreement.
o;
Go To Section
�pCurwmou i�. �ruawrs Let's Go
Winter Vac
© Copyright 2001, The News &Observer. All material found on newsobserver.com is copyrighted Deals.
The News & Observer and associated news services. No material may be reproduced or reused
without explicit permission from The News & Observer. ` Visit NC
- - Get-A-Wai
2 of 3 1/22/2002 10:14 A

MINING CHECKLIST FOR ROUTING
Applicant's Name:
Name: Applic./permit No.:M-01,oCounty:
Date Received: _ / i �/� Jam=
Reviewer.
River Basin Name:
❑ New ❑ Renewal
❑ Modification (outside permit bod lies tlon (inside permit boundaries)
Partial Release G Additional Information Transfer
❑ Release
eojfc�c'
Received:
Qjtion
Regional Office (
Office Mining A lication Review Checklist" too one cocompletepy a
"Mining Applicat on to the other copy; sent Review Form" W/
o� wWWW���/ i�• r'
❑ Division of Water Resources Date. R.
tU, Ak A
❑ NC Wildlife Resources Commission Date. R I
e 14/:111iFp Date: R,
Service „�
Date: R�
�� ification requests
l tI 77 Date: RC
Date: RC
�/ ��^ � � edification requests
Date: RC
Date: RC
i
Z41ease note the following:
? oCX

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
Michael F. Easley, Governor
Charles H. Gardner, P.G., P.E. William G. Ross Jr., Secretary
Director and State Geologist
March 13, 2002
Mr. William B. Duncan
North American Emerald Mines, Inc.
P.O. Box 57
1475 Goble Road
Hiddenite, North Carolina 28636
RE: Mining Permit No. 02-06
North American Emerald Mine
Alexander County
Yadkin River Basin
Dear Mr. Duncan:
Your application for modification of the above referenced mining permit has been approved.
The modification is to allow blasting activities at this site. Please refer to Operating Conditions
Nos. 8.A. through J. of the enclosed modified permit.
The conditions in the modified permit were based primarily upon the initial application.
Modifications were made as indicated by 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.
G.S. 74-65 states that the issuance of a mining permit does noS supersede or otherwise
affect or prevent ulation or
incorporated city or,county ror by any agency or depacement of any zoning rtment t of the rSt to of Nodinance lrth Carolina. adopted
an
As a reminder, your permitted acreage and affected acreage for this site are both 14.02
acres, as indicated in the revised December application
22, 1999 and the supplemental Erosion and Sedimentation Control Narrative
and design calculations.
As noted during a telephone conversation between Ms. Judy Wenner of my staff and Mr.
Jamie Hill on March 13, 2002, your company's previous modification request dated July 26, 2001
that was submitted by Mr. R. Carroll Williams, P.E. on your company's behalf has never been
issued. The modification proposes to extend the grading operations beyond the approved
disturbed area. On August 3, 2001, a cursory review letter was sent to you that included a list of
the items required to continue processing your request. Please be advised that no land disturbing
activities can occur within these proposed areas until your request has been processed and
approved by this office. I have enclosed a copy of the August 3, 2001 letter for your use, in the
re requesting that yourou wish t ennursue this ding modificationcation request be withdrawn fromuest. If not, sfurtherd review.
a letter
q 9 Y pending
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • 919-733-45741 FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal opportunity \ Affirmative Action Employer— 50% Recycled \ 10% Post Consumer Paper

Mr. William B. Duncan
March 13, 2002
Page 2
Please review the modified permit and advise this office at [phone] should you have
any questions concerning this matter.
Sincerely,
Tracy E. vis, P.E., C.P.M.
State Mining Specialist
Land Quality Section
TED/jw
Enclosures
cc: Mr. Doug Miller, P.E.
Ms. Diane Renzi-WRC, w/enclosures
Mr. Bradley Bennett-DWQ, w/enclosures
Mr. William Gerringer-DOL, Mine and Quarry Bureau, w/o enclosures
Mr. R. Carroll Williams, P.E. w/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
Gem Stone 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.

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.
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
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.

Page 3
B. Any stormwater 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
Stormwater Section, Division of Water Quality, to secure any necessary stormwater
permits or other approval documents.
2. A. Any mining process producing air contamination emissions shall be subject to the
permitting requirements and rules promulgated by the N.C. Environmental
Management Commission and enforced by the Division of Air Quality.
B. During mining operations, water trucks or other means that may be necessary shall
be utilized to prevent dust from leaving the permitted area.
3. A. 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.
B. 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.
4. A. Adequate mechanical barriers including but not limited to diversions, earthen dikes,
silt check dams, silt 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. No mining related activities shall be initiated in Phase II until an erosion and
sedimentation control plan has been submitted to and approved by the Department
for Phase II.
All mining permit boundaries (14.02 acres) shall be permanently marked at the site on 100
foot intervals unless the line of sight allows for larger spacing intervals.
6. 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
ground cover, devices or structures sufficient to restrain such erosion.

Page 4
7. 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 B. and D. 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 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.
10.0
ZO
1.5
1.0
0.5
0.7
0.6
0.5
o.a
0.s
0.2
W
Blast Vibration Frequency, Hz
Figure 1 Alternative blasting /eve/ criteria
(Source modifred from figure a-1. Bureau of Mines R18507)

4
C.
Page 5
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/Dg)2 IDS = D
V = 160(Ds)-1.6
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).
The peak particle velocity of any component shall not exceed 1.0 inch per second,
for the purposes of this Section.
Airblast With Monitorina•
Airblast 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:
Lower Frequency Limit of Max Level,
Measuring Svstem 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
D. Airblast 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/2.9x10-1)
Confined Airblast/Overpressure (dBL)
for quarry situation:
A=P-35
U = Unconfined air overpressure (pounds per square inch).
W = Maximum charge weight of explosives per delay period of 8.0
milliseconds or more (pounds).

Page 6
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 = Airblast or air overpressure for typical quarry situations (decibels).
The airblast/overpressure shall not exceed 129 decibels, for the purposes of this
Section.
E. 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;
of stemming and totaland burden den forrs of expleach hole; blast locations d stancer e 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/Airblast Reporting -
If ground vibration or airblast 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. Flyrock 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. Flyrock 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:
I. 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.

'r
Studies:
Page 7
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
incorporate the studies' recommendations into the production blasting
by these blasting conditions. The operator shall make every reasonable effort to
J. Notice: program.
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.
public thoroughfares whenever practical to screen the op9. Existing vegetation or vegetated earthen berms shall be maintained between the mine and
eration from the public.
10. Sufficient buffer (minimum 50 foot undisturbed) shall be maintained between any
excavation and any mining permit boundary or right-of-way to protect adjacent property.
11. A physical barrier consisting of a fence or earthen berm, etc., shall be maintained around
the perimeter of any highwall.
12. 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
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:

i
Page 8
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. 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. A. 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.
No mining related disturbances shall be allowed in Phase II until an erosion and
sedimentation control plan has been submitted to and approved by the Department.
15. The security which was posted pursuant to N.C.G.S. 74-54 in the form of a $58,500.00
Assignment of Savings Account/CD 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. 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.
B. Pursuant to N. C. G. S. 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 archaeologist, North Carolina Division of
Archives and History.

Page 9
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,
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.
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.
2. 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 or sediment basins shall be backfilled and stabilized.

` 1 ^
Page 10
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 Condition Nos. 12.A.
through D.
F. The affected land shall be graded to prevent the collection of noxious or foul water.
Revegetation Plan:
After site, preparation, all disturbed land 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.
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, is hereby modified this 13th day of March, 2002
pursuant to G.S.74-52.
Charles H. Gardner, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources

Producing the
Finest Quality
Emeralds & Gems
in North America
PO. Box 57
Hiddenire, NC 28636
j:n28635.5718
828.63'51--i'7T8
January 29, 2002 g�
Dept. of Environmental and Natural Resources
Division of Land Resources JAN 2092
Land Quality Section
1612 Mail Service Center T35
Raleigh, NC 27699-1612_
Attn: Ms, Judy Wehner
Ref: Request for addendum to Alexander County Mining Permit
Number 02-06 issued to North American Emerald Mines, Inc.
Dear Ms.Wehner:
Following -up on our telephone conversation earlier today, I am enclosing a check for
$100.00 for the purpose of adding blasting privileges to the mining permit previously
issued to North American Emerald Mines, Inc.(NAEM).
In our mining operations, blasting becomes necessary at times when there is thick,
heavy rock surrounding a pocket or cavity located by ground imaging radar
soundings indicating a possible location for gems. To get into the cavity we would
drill holes in the adjacent rock to accommodate small charges of dynamite The
resulting blast or blasts would break-up the rock surrounding the cavity thereby
allowing access to any gems that might exist in the cavity.
If you have need for any further information, please call me or James Hill. President
of North American Emerald Mines at [phone].
Thank you very much for your assistance in this matter.
Sincerely,
//J./�-4
William f3. Duncan
cc: James K. Hill, Jr.
President, NAEM
Encl.

—North American Emerald Mine
Subject: Re: North American Emerald Mine
Date: Thu, 17 Jan 2002 17:48:06 -0500
From: Doug Miller <[e-mail]>
Organization: NC DENR - Mooresville Regional Office
To: judy wehner <[e-mail]>
It was in today's (Thursday Charlotte observer and has a Ppicture with
caption saying blasting was halted because of a big find -apparently as big
or biggger than the first.
I will hold up till we get the paper work.
judy wehner wrote:
> Mr. Hill returned my call. He admitted to doing some minor blasting at
> the site to open a cavern. I explained that blasting operations are not
> part of his mining permit conditions. He's going to modify his permit
> to allow blasting activities. I told him not to blast until he gets his
> permit modified.
> Doug - you may want to wait till the modification request comes in to
> visit the site. He said it is pretty hectic there because they found a
> bunch of emeralds in the cavern and he said to watch the news.
Doug Miller - [e-mail]
North Carolina Dept. of Environment & Natural Resources
Div. of Land Resources - Land Quality Section
919 N. Main St.
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
loft

Imth American Emerald Mine f;
Subject: North American Emerald Mine
Date: Wed, 16 Jan 2002 1Wehne@ - n5c000a11.neV
From: judy wehner Judy.
Organization: DENR/DLR
To: Charles Gardner<[e-mail] <[e-mail]>,
Mell Nevils <[e-mail]>, Tracy nelnai ail.ne
Doug Miller <[e-mail]>, Chris Hite <Chris.Hite@
call. He admitted to doing some minor
norblasting at
are not
Mr, Hill returned my going to modify his permit
the site to open a Perrmit'� conditions-
to blessting gets his
part of his mining p
to allow blasting activities. 2 told him not to blast until he
permit modified.
Doug - you may want to wait till the modification request comes in to
visit the site. He said it is pretty hectic there because they found a
cavern and he said to watch the news.
bunch of emeralds in the
lofl

e: Complaint on N. American Emerald Mine i
r
Subject: Re: Complaint on N. American Emerald Mine
Date: Wed, 16 Jan 2002 09:09:22 -0500 '1 net>
From: Judy Wehner <Judy.Wehner@ ncnlail.net>
To: Charles Gardner <Charles.Gardner@ ncmail.net>
CC: Moll Nevile Mellg."ll@@n alb ne � l�uay Wehner <Judy.We@hner@d net>,
Doug Miller Doug.
American to get back with
call to date. I discussed the complaint with
I have called and left several messages for North
me. They have not returned my o with
Doug. He is planning to investigate the complaint next week after e
he's working on. He wants to g
experienced person needs to see the site.
finishes with the sediment Projects
Charles because he feels an
Charles Gardner wrote:
"Fr
He icaretaker for 4 emeral
> I received a call this afternoon from "Fred" Walker in Alexander
s d mines owned by Jack and Betty
William which he says were done
> County- lain about two blasts,
Mine,
operated by Jamie Hill. One of the
> Wooten. He called to comp
> by North American Emerald p
> blasts was about 10 astsut 1:30
swegre abouto and hBoo efeet fromtone ofttheoWooten's
> p.m. He say are damaging the Wooten's emeralds (breaking
> deposits and he thinks they
> them, he says). Says one of the blasts moved a 7 ft.x 9 ft. boulder on
> Wooten's land a distance of ten feet. Permit allows
> look into whether North Americat ad then let Mr.
> Please have somebody lai. ,
> blasting, talk to North American about the comp
> Walker know what you learn. He's at 828`635-6335• talkeddwith aJamieat
> his name be kept confidential ----said he's already
> Hill aout it).
> Thanks,
> Charles
1/16/2002 9:.
l of

Complaint on N. American Emerald Mine (
r
1) jZ -blp
Subject: Complaint on N. American Emerald Mine
Date: Fri, 11 Jan 2002 16:55:55 -0500
From: Charles Gardner <[e-mail]>
Organization: Division of Land Resources
To: Mell Nevils <[e-mail]>
CC: Jim Simons <[e-mail]>, Doug Miller <[e-mail]>,
Judy Weimer <[e-mail]>
I received a call this afternoon from William "Fred" Walker in Alexander
county. He is caretaker for 4 emerald mines owned by Jack and Betty
Wooten. He called to complain about two blasts, which he says were done
by North American Emerald Mine, operated by Jamie Hill. one of the
blasts was about 10 weeks ago and the second was today at about 1:30
p.m. He says the blasts were about 800 feet from one of the Wooten's
deposits and he thinks
they
ofare
damaging
blasts the
ed oote' sxe9eraldsf. (breaking
them, he says). y one
Wooten's land a distance of ten feet.
Please have somebody look into whether North American's permit allows
blasting, talk to North American about the complaint, and then let Mr.
't what you learn. He's at
28
5-6335
hisker namenow be kept confidential
---- said8he's3 already talkeddwithask Jamieat
Hill aout it).
Thanks,
Charles
711
Charles Gardner P.G. P.E. <charles eardnerna ncmail net>
State Geologist and Director
N.C. Division of Land Resources
Deportment of Environment and Natural Resources
l of
1i14{2002 9:03