A magnetic anomaly sensing system and method uses at least four triaxial magnetometer (TM) sensors with each of the TM sensors having X,Y,Z magnetic sensing axes. The TM sensors are arranged in a three-dimensional array with respective ones of the X,Y,Z magnetic sensing axes being mutually parallel to one another. The three-dimensional array defines a geometry that forms at least one single-axis gradiometer along each of the X,Y,Z magnetic sensing axes. Information sensed by the TM sensors is to generate scalar magnitudes of a magnetic anomaly field measured at each of the TM sensors, comparisons of the scalar magnitudes to at least one threshold value, distance to a source of the magnetic anomaly field using the scalar magnitudes when the threshold value(s) is exceeded, and a magnetic dipole moment of the source using the distance.