An inquest at Melbourne Coroners Court yesterday heard how police were continuing to interview witnesses this week about the disappearance of 12-year-old Terry James Floyd, who was last seen at the intersection of the Sunraysia and Pyrenees Highways near Avoca on Saturday, June 28, 1975 about 5pm.

The inquest was told that a man known as ''Unc'', widely believed to have some involvement in Floyd's disappearance, had been cleared of playing any part.

Homicide Squad Detective Senior Sergeant Ron Iddles told the inquest that Francis Robert Drake, who died in 1991, and believed to be ''Unc'', had an alibi and that evidence against him was unable to be substantiated.

Det Sen Sgt Iddles said more people were likely to be interviewed following the discovery of the new evidence.

Earlier this year Det Sen Sgt Iddles interviewed Russell Kenneth Jones, who was staying at Maryborough at the time and now lives in Red Cliffs.

Jones was initially interviewed in the days following Floyd's disappearance, admitting he had been in Avoca on the day in question and he had been driving a 1969 Holden panel van, fawn in colour.

''Jones was on bail at the time for offences of indecent assault, as a result of assaulting a young boy in a toilet block in Ballarat,'' Det Sen Sgt Iddles said.

''He was convicted of this offence and sentenced to two years' imprisonment.''

He said on the account given by Jones, there was a strong possibility he would have seen Floyd on June 28, 1975.

Jones was interviewed on May 10 this year, and denied any involvement in the disappearance of Floyd.

Coroner Francis Hender yesterday found Floyd had likely died from unknown causes at an unknown place at an unknown time.

Mr Hender said the inquest could be re-opened if new information came to hand.

Outside court, Det Sen Sgt Iddles said it was still possible that someone could face charges in court.