Residents desperately searching for a 14-year-old schoolgirl revealed they missed finding her body just 500 yards from her home - because it had been purposely 'hidden' in dense undergrowth.

A search team looking for Lilly Jones say they had scoured Duffryn Park in her hometown of Blaina, Gwent, for any signs of the teenager who was missing since Saturday with her phone switched off, for more than 48 hours without success.

But on Monday a body was discovered in Blaina, a former mining village near Ebbw Vale in the South Wales Valley, at around 10.10pm. 

A 14-year-old boy has since been arrested on suspicion of murder and remains in police custody.

According to local councillors, the teenager - who was an only child - was found hidden in undergrowth next to a cycle path by two young people who had gone out searching for Lilly.

Formal identification has yet to take place, but Lilly's family has been informed. 

The body was found just 50 yards from the town's bowls club which had opened up to give refreshments to the search parties - and less than 500 yards from Lilly's family home, a three-bedroom semi in the town.

Volunteers who searched for the schoolgirl believe her killer tried to hide her body in the dense undergrowth next to a cycle path.

The park - which is only used by bowls club members and people taking a shortcut to the town centre - was sealed off today with a forensic tent erected to preserve the crime scene.

Gazebos were also put up to shelter investigating officers from the intense sun and temperatures of 32.5C. 

Mum-of-two Katy Bennett, 44, said: 'I searched very close to that spot and didn't see anything, she must have been covered up.

'There were about 60 of us out looking for her in that area on Monday night. The whole community rallied around to look for Lilly.

'I left the search at 9pm but there were still people arriving to help at that time. She was found at ten past ten.'

Another search party member said: 'They found her under trees just up from the bowls club. People had already looked there so she must have been hidden.'

One local resident said: 'It's a huge shock, everyone is in a state of disbelief and worry.

'Blaina is a small town so people knew the girl was missing and there were searches going on. Now this, it's a terrible thing.'

Gwent Police has referred itself to the Independent Office for Police Conduct over the matter.  

Lilly's family had put out desperate appeals and were worried sick because they had not heard anything from the 'quiet and gentle' teenager in 48 hours.

Her mother, Gemma Jones, put out an appeal saying she was hoping her daughter had gone to Cardiff, before pleading: 'Please bring my baby back home.'

Lilly's aunt, Zoe Jones, wrote: '[She] went out at 6.30 and hasn't come home – very much out of character. Lilly please come home my girl, I promise you're not in any trouble … we just want you home.'

Councillor Lisa Catherine Winnett said the community was 'devastated' by the discovery. 

She said: 'My thoughts and prayers are with Lilly's family at this devastating and awful time. I hope police work promptly now to find the perpetrator.'

School friends from nearby Brynmawr Comprehensive were sent home early on Tuesday and girls of her age were seen crying and hugging each other in the street. 

Meanwhile St Peter's Church in Blaina has 'opened the doors for anyone in the community that would like to light a candle for Lilly, write in a book of condolence or just a chat with the clergy'.

In a statement, the church said: 'Our condolences go out to the family and friends of Lilly and the local community who have been affected by this devastating news.'

Lilly, 5ft 6in and of medium build, was last seen in the town's High Street wearing a long black dress and black sandals around 6.50pm on Saturday. 

Locals claim the teenager's phone had been turned off around 20 minutes before she was last seen. 

A resident said she saw Lilly 'outside the kebab shop' on the night she disappeared and it 'looked initially like she was waiting for someone'.

She said: 'I told her that she looked lovely. She crossed over and walked through the church yard.'

Gwent Police said the murder of a much-loved teenager would cause 'distress and concern' in the community.

Lilly's parents Karl and Gemma Jones are with a family liaison officer and being comforted by family.

Steve Jenkins, the previous owner of the family's three-bedroomed semi, said: 'It's all very raw at the moment.

'Lilly was a lovely, quiet and gentle girl. I saw her grow up and remember playing in the garden.

'We live in the same street and my son was friends with her. He's so upset we've had to take him out of school. He was only talking to her on Thursday.'

Neighbour Wayne Edwards said: 'The whole town is devastated, not just people who knew Lilly and her family but everyone.

'I used to see her out playing in the street but over the last few years she would be out with her friends.

'The search for her was huge, the helicopter was circling all day and drones were flying. It's tragic that she was found so close.'

Senior investigating officer, Detective Chief Inspector Steven Thomas, said: 'We continue to have a significant police presence in the area and understand the concern amongst our communities at this time.

'Our enquiries are ongoing to establish the circumstances surrounding the death and we currently have one person in police custody being questioned.

'I'm asking anyone with information to please come and speak with us, you can do this in person, or you can contact us on the usual channels.

'I'd also encourage people not to speculate online as this is a live investigation and such comments can have an impact on our ability to bring anyone, found to have committed a criminal offence, to justice.'  

Meanwhile the police force has referred itself to the IOPC. 

An IOPC spokesperson told Daily Mail: 'We can confirm we have received a mandatory referral from Gwent Police in connection with this matter.

'The referral is now being assessed to see if the IOPC needs to be involved any further.'

Anyone with information is asked to contact police on 101, quoting 2600197059, or Crimestoppers anonymously on 0800 555 111.