With regards to the hazards of sanding micarta and G10...
1. Dust.
Most fine dusts are irritant and best avoided. Micarta and G10 tend to be quite a 'rough' dust, so can be very irritating to the sinuses and mucal membranes in lungs. In addition, the phenolic resin is not good for you and having it in very fine pieces means that there is much more contact with the chemical.
Dust stays in the air for quite a while, and can be released from carpets and other surfaces with movement, so don't think that once you've finished sanding, it's all gone. You need to think about the room afterwards and anyone in it. People can and do get long-term illnesses from dust inhalation, and it doesn't take much if you're sensitive to it. Some die of it.
You need a dust mask, at least. See below:
2. Chemicals.
When machined or ground, the phenolic resin releases formaldahyde - it stinks! It's also very, very toxic. So, if doing anything other than a little hand sanding, you really should wear a formaldehyde respirator (not just a dust mask!) and work in a well ventilated place. These are quite easily available in the UK, probably the same everywhere.
3. Summary.
I used to be a head of science and Safety (COSHH) Officer for the labs. That makes me a little over-the-top sometimes when it comes to chemical hazards. I've also almost completely lost me sense of smell and can barely breathe though my nose due to inhalation of chemical fumes when much younger and stupider. So I've a reason to be a little paranoid.
Wet sanding will probably mitigate much of the dust hazard, not sure if it will do much if you use a grinder though.
Enjoy your Micarta grinding!