Hi Steve,
Boy, I don't envy anyone who has to hunt in that stuff. I am not sure any present type of metal detector is going to work well.
By nature, all detectors induce a magnetic field. VLF's have a varying field and most PI's a brief repeating pulse. If the ground retains a significant amount of the magnetization, then this is going to present a real problem.
Did you notice how long the distortion caused by a strong magnet would remain? In other words, mark the spot that you were getting a false signal and then go back, say 5 minutes or longer later to see if the pseudo target was still there?
I don't profess to have any great knowledge of the distortion or how something like this could affect how a detector would work, but just playing with magnets and knowing a little magnetic theory, I would think it would be a real problem and inhibit any depth.
By nature, common poles of magnets repel each other. Also, I know if a magnet becomes covered with magnetic particles like black sand, pieces of metal, etc, the field strength diminishes tremendously.
If we add the fact that magnetic lines of flux are lazy (like me) and take the path of least resistance trying to return to the opposite pole, then the guys idea of the field dispersing laterally in hot ground makes some sense.
Obviously, the technology will have to make some changes before significant depth can be obtained.
I suspect that some form of reversing the polarity of the pulse and varying pulse durations and time between them will have the best chance.
Reg