Tamarisk Investments, the Zambian subsidiary of International Diamond Consultants – in which Paragon Diamonds holds a 44.3% stake, has been granted a two-year license to explore for diamonds in an 862-square-kilometer area of eastern Zamiba, stockmarketwire.com reports.

The area covered by the Tamarisk license is known to contain 14 lamproite pipes (diamondiferous deposits of volcanic rock, which differ from kimberlite pipes in shape) in an area previously explored by the De Beers diamond company, and Paragon has called the exploration "highly prospective."

Last week, Zambia – which is not currently a diamond producer but borders two of the world's biggest diamond producers, Zimbabwe and Botswana, as well as Tanzania and Angola – placed an ad for international partners to help the government-run Zambia Consolidated Copper Mines Investment Holdings prospect for diamonds and precious metals.