Modelling of magnetic terrain and comparison with actual data is an efficient method for assessing large sets when residual anomalies are important. The technique of Blakely (1981) which utilises a rapidly converging series of Fast Fourier Transforms is an efficient and sufficiently accurate method for this assessment.The technique has been applied to a data set at Kilkivan, south eastern Queensland. Here the magnetic sources are near horizontal Triassic volcanic flows unconformably overlying a non- magnetic Palaeozoic basement.Geological control is good so that it is possible to model the bottom of the flow. It is postulated that the difference between the calculated and actual data represents paleochannels in the basement. Similar techniques applied to gravity data have not been as successful.