A drilling assembly includes a first tubular member supporting a first transmitter antenna and a steering assembly located beneath the first tubular member. The drilling assembly also includes an earth boring device comprising a drill bit. The drill bit has a body member, a bottommost surface and a gage surface at a stabilizing section of the drill bit. The earth boring device is supported beneath the steering assembly. The earth boring device includes a second transmitter/receiver antenna supported in spaced relation to the first transmitter antenna and within 36 inches of the bottommost surface of the drill bit, and at least one electrode generally at an outer surface of the stabilizing section of the drill bit.