I cant reveal the purpose of the prototype, but its stuff made of metal, where I can mount magnets. The sensitivity is required is to see a normal fridge magnet in about 5-8 cms as the precision of the product is low, and sensibility can be adjusted in timers.
I just tried a quick and dirty test with the compass module and can get detection ranges in excess of 15cm at the default sensitivity so a magnetometer might be a feasible option.