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Over the past decade, helicopter-borne transient electromagnetic (HTEM) systems have been rapidly developed. A new HTEM prototype (referred to as a CAS-HTEM) has been developed by the Chinese Academy of Sciences. In terms of hardware, the CAS-HTEM system uses an inflatable structure to carry the transmitting loop, which significantly reduces the weight of the system and makes it easier to transport. A dual gain receiver was innovated to extend the dynamic range of the system. In addition, an observation circuit for transmitting voltage waveform is introduced, so that the derivative waveform of transmitting current with higher SNR could be calculated. In terms of data processing, more reliable early time data could be obtained by band-limited effect removal; a weighted stacking algorithm is introduced to reduce the narrow band noise more effectively and increase the sensitivity of data to the anomaly location; a method based on τ-domain transform is used for late time signal processing. The results of the field test which was carried out in Inner Mongolia were found to be consistent with the drill data, which effectively verified the performance of this HTEM prototype. [ABSTRACT FROM AUTHOR]