North American Emerald Mine Renewal Ltr 082311

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
August 23, 2011
Certified Mail
Return Receipt Requested
7008 1300 0000 1125
Mr. James K. Hill, Jr.
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636-9233
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Hill:
Beverly Eaves Perdue, Governor
Dee Freeman, Secretary
We have reviewed the Renewal request you/your company submitted for the referenced
mine site. However, the following information is needed to continue processing your
application:
Please clearly define which sediment diversions are associated with each trap.
Some diversions appear to by-pass the intended trap.
The limits of clearing appear to extend into the Esmeralda mine site. Please
clarify on the map.
The surface area of ST-3 should be increased because of the imperviousness of
the parking lot. The trap should have a high C-value and may need to be a basin
rather than a trap.
4. Ensure that ST-7 does not discharge into ST-8.
5. All spillways must be designed to pass a 25 year 24 hour storm event. Revise
the Sediment Trap Chart to reflect this.
Please note, the Land Quality Section may request additional information, not included
in this letter, as the mining application review progresses.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • Telephone [phone] / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604 - Internet:hftp://www,dir.enr.state.nc.us/pages/landqualitysection.html
An Equal Opportunity / Affirmative Action Employer -50% Recycled / 10% Post Consumer Paper

Certified Mail
Mr, Hill
Page 2
The reclamation bond has been calculated using the information submitted on the
revised mine map. The reclamation bond for this site would be $83,800.00. The calculation
worksheet is enclosed for your review and the new bond or balance ($13,608.92.00) will be
required prior to approval of this renewal request.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc.. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that our review cannot be completed until all of the items listed
above have been fully addressed.
In order to complete the processing of your application, please forward two (2) copies of
the requested information and the bond to my attention at the following address:
Land Quality Section
Division of Land Resources
Department of Environment and Natural Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
As required by 15A NCAC 56.0013, you are hereby advised that you have 180 days
from the date of your receipt of this letter to submit all of the requested information. If you are
unable to meet this deadline and wish to request additional time, you must submit information,
in writing, to the Director clearly indicating why the deadline cannot be met and request that an
extension of time be granted. If an extension of time is not granted, a decision will be made to
grant or deny the mining permit based upon the information currently in the Department's files
at the end of the 180-day period.
Though the preceding statement cites the maximum time limit for your response, we
encourage you to provide the additional information requested by this letter as soon as
possible. Your prompt response will help us to complete processing your application sooner.

Certified Mail
Mr. Hill
Page 3
Please contact me at [phone] if you have any questions.
Sincerely,
9mac_ �.",O'
Jaith A. Wenner
Assistant State Mining Specialist
Land Quality Section
Enclosures: Bond Forms
Bond Calculation Worksheet
cc: Mr. Zahid Khan
Mr. Tom Freeman — via e-mail