Optimal Allocations With Limited Resources: An Intuitive Approach

During-all phases of exploration limited resources must be allocated among exploration methods and among exploration prospects. This problem,, an exercise in optimization, can be treated mathematically. For three objective functions - maximizing return, return to cost and return minus weighted cost - theoretical results exist which enable the exploration planner not only to gain valuable insight into the problem, but also to estimate the resources necessary and to allocate these resources for' at least-two stages of exploration prior to initial field work. A two-stage exploration strategy for volcanogenic-sedimentary iron in northern Egypt illustrates, how the results can be used. Stage 1 consists of an aeromagnetic survey to map the structure of five areas;" stage 2 consists of field reconnaissance work. For the three objectives, lower bounds are calculated as a function of exploration expenditures for each stage in order to facilitate the choice of an-optimal exploration budget. Nomograms are then presented which, based on the Kuhn-Tucker Conditions', enable the incremental allocation of airborne and reconnaissance effort among the five areas.