village by mesa with diamonds

Go diagonal left from spawn, (cross edge of swamp), for about a minute. I've put a couple of pics on to help. You will come to a desert village right on the edge of mesa. Blacksmiths has some interesting loot and if you dig down by well  between blacksmiths and library you will find diamonds.

when you dig at well you will fall into three caves on the way down. In the second one you may have to block off the water. In the third there is some lapi in one corner, go down into the cavern near this and you will see the diamonds.