HiOld Pal,
exactly the same thing happened to me this same day on the same machine and I eventually solved the problem in exactly the same way: First re-booting the safe way with shift pressed -- the AirPort Card was reported as having got lost and no Bluetooth was available either; then I did the SMC resetting (the way you find it recommended in the knowledge base
http://support.apple.com/kb/HT3964 ) and an additional unplugging of the machine -- and !milagro! !miracle! Bluetooth showed up again in the system preferences such that I could connect and use again the magic mouse.
What a pity that I did'nt read your comment earlier. I did a short and a long hardware test (all was reported as being OK), reinstalled the system -- no use either.
So thanks for participating in your positive experience.
Kindest regards from Old Europe