Mixed-oxide nanostructures of the type xGd 2 O 3 -(1-x)α-Fe 2 O 3 (x=0.1, 0.3, 0.5 and 0.7) were synthesized by mechanochemical activation for ball milling times of 0, 2, 4, 8 and 12 hours. The systems were subsequently analyzed by Mӧssbauer spectroscopy, X-ray powder diffraction (XRPD), magnetic measurements and optical diffuse reflectance spectroscopy. The magnetic hyperfine field was studied as function of ball milling time for all sextets involved and found to be consistent with the formation of a limited solid solution in the systems investigated. The end-product was the gadolinium perovskite, represented by a doublet whose abundance was derived as function of the milling time. The XRPD patterns recorded for the equimolar composition were dominated by the diffraction peaks of GdFeO 3 after 12 hours of milling. The hysteresis loops were recorded at 300 and 5 K in an applied magnetic field of 5 T and were interpreted as a superposition of paramagnetic behavior of gadolinium oxide and weak ferromagnetic behavior of hematite and gadolinium perovskite. The Morin transition of hematite was inferred from zero-field-cooling-field-cooling (ZFC-FC) curves measured with a magnetic field of 200 Oe in the 5-300 K temperature range and was found to depend on the ball milling time. Optical diffuse reflectance spectra showed that the compounds were semiconductors with an optical band gap of 2.1 eV.