The purpose of this paper is to present a system developed for detection and accurate mapping of ferro-metallic objects buried below the seabed in shallow waters. The system comprises a precise magnetic gradiometer and navigation subsystem, both installed on a non-magnetic catamaran towed by a low-magnetic interfering boat. In addition we present the results of a marine survey of a near-shore area in the vicinity of Atlit, a town situated on the Mediterranean coast of Israel, about 15 km south of Haifa. The primary purpose of the survey was to search for a Harvard airplane that crashed into the sea in 1960. A magnetic map of the survey area (3.5 km2 on a 0.5 m grid) was created revealing the anomalies at sub-meter accuracy. For each investigated target location a corresponding ferro-metallic item was dug out, one of which turned to be very similar to a part of the crashed airplane. The accuracy of location was confirmed by matching the position of the actual dug artifacts with the magnetic map within a range of ± 1 m, in a water depth of 9 m.