Shares of Paramount Gold and Silver Corp. jumped Tuesday after the Nevada-based precious metals miner announced the confirmation of a multi-million ounce resource.

Paramount's 100 percent-owned Sleeper Gold Project in Nevada is now believed to have an in situ measured and indicated resource of 2.6 million ounces of gold and 25.3 million ounces of silver and an additional inferred resource of 1.1 million ounces of gold and 8.2 million ounces of silver, Paramount said.

Christopher Crupi, the company's CEO, said Sleeper is emerging as one of Nevada's largest undeveloped gold resources.

Its location, size and style of mineralization suggest that Sleeper could sustain a low-cost mining operation, he added.

The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca, Nevada. Acquired by Paramount in 2010, the 45 square mile project area includes the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as newly purchased claims stretching south down trend to Newmont's Sandman project.

Shares rose in midday trading 13 cents, or 5.44 percent, to $2.52. In the last 52 weeks shares have ranged from $2.32 to $2.59.