Hg 12 weapon question

so if I refine an hg 12 weapon and upgrade it to the blood mushroom skill 1, do I loose the refine level? and how to make upgraded version of blood sorcerer armor

 

if you read the armor...it says something like can be use to make blood ghost garment...

 

Blood Sorceror Weapons (D) are an upgraded version of the normal Blood Sorceror Weapons. They have an increase to Weapon Damage and a skill added.
You can upgrade a BS Weapon by crafting it. For more information, look it up in F11.