The body of a missing Launceston man Billy Ray Waters was believed to have been found on Friday afternoon.
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Two youths were taken into custody about 3.30pm after Tasmania Police found the body in bushland near Mayfield an hour earlier.
Although the body had not been formally identified, Detective Acting Inspector Craig Fox said it was likely that of Mr Waters, 19.
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Two youths were taken into custody about 3.30pm on Friday and were assisting police with the investigation.
The last confirmed sighting of Mr Waters was on Holbrook Invermay on Sunday, August 4.
He was declared missing a week later on August 11.
"Our thoughts and condolences are with Billy's family and loved ones at this difficult time," Detective Acting Inspector Fox said.
Before the body being discovered, Detective Acting Inspector Fox said foul play was a possibility and that the investigation had taken a criminal turn.
"We've received some information which has definitely led us down a criminal investigation track," he said
Police investigations are continuing.
Anyone with information is urged to contact Launceston Police on 131 444, or Crime Stoppers anonymously on 1800 333 000.