This object still has a few people wondering what it is...!
Many thanks to all those that have contacted me to say they are trying to discover it's origins.

The 'badge' had a crown on the top. Underneath there is the text L.V.D = Local Volunteer Defence? one person has suggested. It also appears to be a 20th century military badge. The elephant in the centre is similar to the one shown on the Bolton Heraldic coat of arms and is derived from the arms of Coventry, and recalls that Bolton historically belonged to the diocese of Mercia, of which Coventry was the seat. The saddle of the elephant shows a mitre for the bishops. The elephant stands on moorland to suggest the towns old name "Bolton-super-Moras" or "Bolton on the Moors". The bottom section shows the rose of Lancaster perhaps?

Update 7th June 2008

From the Preston Guardian

Wednesday October 2nd, 1861
'Review and Inspection of Artillery'
There's a mention of various Lancashire Volunteer Brigades and Bolton Corps are mentioned."the volunteers were put through a variety of battalion movements, file firing with blank cartridge in line, batteries or companies &c. While firing in line, one of the Bolton Corps was wounded in the face by the accidental discharge of his carbine. His injuries are not of a severe nature. One officer and servant were also thrown from their horses, which were affrighted by the discharge of his carbine."

Saturday September 10th, 1864.
' Rifle Contest'
A contest between the Chorley and Bolton Corps - the 61st and 27th Lancashire Rifle Volunteers-came off at the Bolton range, at Kenrsley, on Wednesday last, in which the former proved victorious. After the contest, both parties adjourned to the Bowling Green Inn, Halshaw Moor, where they were entertained, at the expense of the Boltonians, at a sumptuous dinner. The greatest good feeling prevailed, and all seemed to enjoy themselves.

Score:

August the 6th 1870.
'The Chorley and Bolton Artillery Volunteers'.
"On Saturday afternoon, the Chorley and Bolton Artillery Volunteers were inspected by Col. Strange, on the drill ground of Chorley Corps. The Bolton Corps arrived by the 5.0 p.m. train and were met by the Chorley Corps, and they marched to the ground, under the command of Lieut-Colonel Ainsworth. Col. Bowden, Adjutant Flynn, and Major Lightoller were also present. The men, numbering about 400, were put through the usual evolutions and gun practice, after which Colonel Strange addressed them. He complimented the corps upon cleanly appearance and proficiency in drill, .... as it is highly necessary that they should be well up to their work, for affairs were somewhat gloomy, and they did not know what might happen, and how soon they might be called upon to go through their movements in earnest."

Leeds Mercury Newspaper, Friday September 7th 1883.
'Army Organisation and the Volunteers'.
"...and the Preston and Bolton Corps, late the 11th and 14th. which are now designated the 1st and 2nd Volunteer Battalions of the Royal North Lancashire Regiment."

Reference:

International Civic Heraldry site
http://www.ngw.nl/int/gbr/b/bolton.htm

Preston Guardian Newspaper, Wednesday October 2nd, 1961, Issue 2573, Saturday September 10th 1864 Issue 2775, Saturday August 6th 1870 Issue 3083

Leeds Mercury Newspaper, Friday September 7th 1883, Issue 14170