Ann: First Cobalt Drill Results from Iron Creek, page-8

Those figures are for the open pit option, the underground only option boasts much higher grades for a decreased overall size of resource.

FCC management would prefer an open pit option than underground with these figures and an open pit is much cheaper to operate than underground.

The extensive drill program underway has been delivering both higher grades than reported in this calculation in the two zones as well as mineralisation between those two zones. This would make the open pit option even more viable and if both the strike and depth extensions succeed then this will be a very large resource.

Cobalt is economical to mine at 0.1% which is likely why they chose that as a cutoff grade. The copper credits in the calculation bring the cobalt up to an economical grade but the final figures presented as measured and indicated will be more comprehensive and include much more than what has been shown by the drill results that early calculation is assessing.

At least this is my understanding, I'm more than happy to be corrected.