The methodology was explained in detail in the most recent update Tuesday 26th Feb.
"The PCD has demonstrated commercial gas production from 1 of 3 coal seams located within the Telford basin and there is additional opportunity for resource upgrades in the future. The Company expects to realise a significant reserve large enough to support a commercial project of over 20 years. Thereafter, LCK expects that additional resources will be upgraded as the project progresses."
i.e. 1 out of 3 coal seams will be upgraded initially, which should be sufficient to support commercial operations. The other 2 will be bonuses for teh future.
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