Yes.
However getting a precise location takes 3 rounds of concentration during which time the sneaky person can move out of the area detect magic is being used on. (Or kill the person using detect magic)
If they have blocked Line of sight to the caster he will know the location but not be able to determine the type of aura (as per the spell) of they could move behind sufficient material to block the spell (thin sheet of lead etc)
To block a magical divination effect they would have to be using magic designed to block divination
A;so you may get more and better answers on these basic game mechanic question in the correct forum
http://paizo.com/paizo/messageboards/paizoPublishing/pathfinder/pathfinderR PG/rules
This is the forum for third party publishers rules questions and as a result less people look at it