We describe a new localisation and source separation algorithm which is based upon the accurate construction of time-frequency spatial signatures. We present a technique for constructing time-frequency spatial signatures with the required accuracy. This algorithm for multichannel source separation and localisation allows arbitrary placement of microphones yet achieves good performance. We demonstrate the efficacy of the technique using source location estimates and compare estimated time-frequency masks with the ideal 0 dB mask. Â© Springer-Verlag Berlin Heidelberg 2009.