The conventional audio-frequency magnetotelluric method has been useful in problems of shallow exploration to depths of a few kilometers. Because the natural sources are unpredictable in strength and direction, we have examined the possibility of doing magnetotelluric sounding utilizing the ratio of horizontal electric field to horizontal magnetic field from a controlled source. The source chosen for this study was a grounded electric dipole. The equations for the electric and magnetic fields around this antenna as a function of range and azimuth have been calculated for a half-space and for a one-layered earth. These calculations were checked for the half-space case with an analog model and in the field at the Bonneville Salt Flats. In addition, layered cases were calculated, and a field example near Timmins, Ont., studied.Provided the distance of the observation point from the source is three skin depths (relative to the greatest resistivity in the section) or more, the conventional magnetotelluric interpretations can be applied. If the observations are closer than this, it is possible to use sets of type curves for the analysis. Such curves have been calculated.Lateral variations were studied in a model tank and by studying a massive sulfide deposit near Gooderham in Ontario.