In this study the separation possibility of gangue minerals from a low grade magnetite ore with 45% Fe from an iron ore deposit located near Erzincan-Turkey was investigated. The iron ore deposit consists of mainly magnetite mineral. Hematite is the second iron oxide found in the deposit. The gangue minerals contain mainly SiO2 and Al2O3 impurities. The main object of the research is to investigate the production of a concentrate suitable for iron ore pellet production. The concentrate for pellet production should have at least 65% Fe with reasonable gangue contents (SiO2 <6.0% and Al2O3 <1.0%). The Davis tube and low intensity drum type wet magnetic separators were used for upgrading the Fe content and separation of gangue impurities from the iron ore. The results showed that, in order to produce a concentrate with sufficient Fe grade (>65% Fe), the iron ore should be ground to get 45% of material by weight to be finer than 45 mu m. The concentrate with over 65% Fe and 90% Fe recovery could be produced with 45% Fe content from the feed material by crushing, grinding and magnetic separation operations.