Paramount Mining Corp Ltd hopes to develop a major diamond and gold project in Ghana with the market endorsing its decision, pushing shares in the explorer over 57 per cent higher.

The historic Akwatia project is a joint venture with Lakeport Group Ltd and hosts four main prospects.

An independent report said the project contained 14 million carats of diamonds and 2700 kilograms of gold.

Paramount said it hoped to develop Akwatia into a long term mining operation and could initially earn a 51 per cent stake by spending $US1.95 million.

It can then acquire an additional 34 per cent stake by making a payment of four per cent of the net present value of the mine after a bankable feasibility study has been conducted.

Paramount shares gained four cents to 11 cents.