Has anyone seen this before

I agree with KSR, looks like hyperkeratinisation to me. This is usually initiated by some form of irritation or inflammation, which results in a change to the nature of the skin cells and the growth of a horn-type structure. Unusual location for this though. They are fairly frequently seen on the foreheads of rams that have been fighting, making them look a bit like unicorns.
 
tsk. Thought it might have been updated when you bumped it Texel. Has the OP even been back online recently, Im dying to hear more about it.
 
There wa a horse on our yard that had something like this. Same texture/feel and look only in the girth area. It turned out to be a sarcoid. It starte the size of a jelly bean and after the Liverpool it was like 4/5 inches accross and looked like an upturned mushroom that just dropped out. That also felt like horn, very dry and hard. Interested to know what it turn out to be.
 
Probably a sarcoid, mine had one under her belly and it looked like horn - as in a chestnut or ergot. It didn't look like a sarcoid until I took a photo and once I zoomed in on the PC the nodules were very clear.

E mail a photo to Derek Knottnebelt an Liverpool and he'll know:D
 
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