Akora Resources (ASX:AKO) said test work confirmed the upgrade potential of intermediate-grade iron ore at its Bekisopa iron ore project in Madagascar, according to a Wednesday Australian bourse filing.

The iron ore deposit has intermediate-grade direct shipping ore mineralization ranging from 40% to 58% grade of iron in addition to the identified high-grade ore resource, the filing said.

Test work confirmed material at coarse-crush product size with a 52.8% iron grade that could be upgraded to a lump product grading 59.2% iron at 80.8% recovery using basic dry low-intensity magnetic separator processing.

Material averaging 50.3% grade of iron was upgraded to a fines product grading 60.8% iron at 88% recovery.

The test work was completed as part of the company's pre-feasibility study, which is expected to be released in the March quarter.

The firm is progressing plans to develop a stage one direct shipping ore operation at the project to produce up to two million tonnes per annum of a greater than 60% grade of iron average grade lump and fines product from the near-surface weathered zone mineralization.