Satellite based navigation systems (GPS) are widely used for ground, air and marine navigation. In the case of a malfunction or satellite signal inaccessibility, some back-up navigation system is needed. An electronic compass can provide this function. The compass module described in this paper is designed for precise navigation purposes. The compass module is equipped with electronic tilt error compensation, and includes everything in one package – electronics with digital output, sensors. A

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... pical application of this compass is in underground drilling. A critical parameter in this application is heading accuracy. A reading error of 1 degree can cause a displacement of 1.8 metres in the target area (length of tunnel 100 m). This is not acceptable in an urban conglomeration, and therefore a more accurate heading sensing device must be used. An improved version of this electronic compass is being finished.