1) The Noldor in Valinor definitely mined for gems
2) To the extent the BOLT is canon, one of the Twelve Houses (Meglin's) was that of the Mole, a house of miners. They were distinct from Rog's Hammer, the smiths.
3) The Noldor most assuredly quarried, not all that far from mining. "Deep they delved us" goes Legolas' song in Hollin.
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The entire plot of The Lord of the Rings could be said to turn on what Sauron didn’t know, and when he didn’t know it.
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