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Diamond
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"After years of research in the mines, I believe I've learned something about diamond frequency. My research involved only the stones that are scattered about the mines... The ones broken with a pickaxe. Mineral yields from other sources require more research. Diamonds seem to only form at mine level 50 or greater. At level 50, approximately 1 in 500 stones will be diamond-rich."
Despite the comments of this book it does appear that diamonds do appear at earlier levels in the mine, although extremely rare. An individual player found a diamond as earlier as level 29 in the mines from a regular stone.
A Diamond is the best gem for the [[Crystalarium]] as you cannot duplicate a [[Prismatic Shard]] or [[Iridium Bar]].