i believe you need coal chunk but i will try itUsing Thaumcraft aqua shards to make a Greg Tech pick (called Aqua Pick in NEI) gives you early Fortune III and should increase your chance of getting an actual diamond drop from the small diamond ores (mine at 6-7 ish height for small diamond ore).
You should be able to get industrial diamonds from the steam compressor using the coalball recipe, I believe.
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