AusQuest (ASX:AQD) said that test results have identified three additional prospects at the Morrisey magnetite project, in Western Australia, that can produce a premium iron product, according to a Monday filing with the Australian bourse.

Beneficiation test work confirmed "excellent" recoveries of magnetite from its host rock at the prospects and that it could be upgraded to greater than 70% iron, the filing said.

Further drilling is required to determine the resource potential of the project, the filing added.