Freehill Mining (ASX:FHS) achieved a product grade of nearly 66% of iron from material crushed to 6 millimeters after it completed magnetic test work on a 400-kilogram bulk sample of magnetite from the Yerbas Buenas mine in Chile, according to a Friday Australian bourse filing.

The result provides the basis for further magnetic test work to be undertaken in the near term, which will include assessing material crushed to 3 millimeters and 5 millimeters to determine if a higher grade concentrate can be produced, the filing said.

The company will progress mine planning, reviewing different permitting scenarios, and determining the necessary capital expenditure to restart magnetite mining from the historical pit.

The firm's shares rose 20% in recent trading on Friday.