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This paper presents the principle, design, construction, and methodology for an electromagnetic (EM) system to be used in the detection/location and mapping of underground cavities using surface measurements. The EM instrument consists of a loop-loop transmitter/receiver system with the transmitter placed inside the cavity. The transmitter's position and depth are determined by analyzing the shape and distribution of the transmitted field on the surface. From the perspective of a cylindrical coordinate system, the vertical component of the through rock transmitted magnetic field peaks at the point where the transmitter and receiver are vertically collinear. On the other hand, the horizontal component reaches a minimum at this point. Based on these observations, a procedure is presented and tested that efficiently locates the position as well as the depth of the transmitter. A physical model for the system was developed and compared to the results of calibration experiments, with very good agreement. The model allows the study of different responses for EM waves/fields propagating through a homogenous Earth of different electrical characteristics and therefore enables several type-curves to be generated that aid in the development of an optimal system.