We are trying to build an Inductive Proximity Sensor for metal wheels. This will mount to a metal wheel and give an output when the wheel passes over the sensor. We currently use a traffic detector for this with a 6" diameter 250uH loop. The wheel is a large amount of ferrous steel about 4-6 inches away from the loop. I would like to redesign the traffic detector amplifier component so that it can be integrated into the loop. The biggest issue with this design is that it needs to run 24/7 and be able to handle temperature changes.
I have considered using a PIC with an oscillator output and then monitoring the frequency shift for detection. Does anyone have any suggestions of an easier way or a good PIC to use?