Paddle Steamer Haul Could Be Worth Over £100m

American salvage experts think they have found the long-lost wreck of a paddle steamer which may yield the richest treasure ever salvaged from a sunken vessel.

The SS Republic sank during a violent hurricane in 1865 as it was heading for New Orleans from New York with 59 passengers and 20,000 gold coins on board. The money was for the reconstruction of the defeated Confederacy.

Every coin had a face value of $20 (£12.50), but coin dealers estimate they would now reach up to $9,000 (£5,600) each at auction. The total haul could be worth between £75m and £113m.

The salvage experts Greg Stemm and John Morris of Odyssey Marine Explorations have been searching for the ship for 12 years.

At the weekend they finally announced they had found it in 510 metres (1,700ft) of water about 160km (100 miles) off the south-eastern US coast.

Earlier this month, an underwater robot with a video camera detected a copper-clad rudder on the seabed, a side wheel and the outlines of a decaying hull. Its dimensions matched those of the SS Republic.

Excavation of the site is due to begin next month using remotely operated robotic equipment. "It's almost like having a hand down there," Mr Stemm said. "You can literally feel the pressure when you're picking things up and moving them around."

Because the site is in international waters, the company does not need a permit. It has, however, been granted a federal admiralty arrest of the site, which makes it illegal for others to work there.

The company searched 3,840 sq km (1,500 sq miles) of ocean using sonar and magnetometer technology before finding what it believes is the SS Republic.

"After all the years of searching for this particular shipwreck, finally finding it is just an indescribable feeling," said Mr Stemm.

Odyssey, based in Tampa, Florida, is investigating a number of shipwrecks around the world. So far it has carried out only one deep-water excavation, on a Spanish wreck in the Dry Tortugas national park in Key West, Florida, which produced £3.1m in gold.

The company is working with the British government to excavate the wreck of HMS Sussex, a warship which sank in 1694 off Gibraltar while leading a British fleet into the Mediterranean. But that project may now be postponed as the firm concentrates its resources on the SS Republic.

The largest sum ever recovered from a wreck came from the SS Central America, which sank in a hurricane off the North Carolina coast in 1857 carrying pro ceeds of the Californian gold rush.

Around £62m in gold was brought up in 1987, including the largest known ingot from the time: a 10-inch brick which sold for a reported £4.3m.

The SS Republic, a steam ship built in 1853, was originally named the SS Tennessee. It worked on the Atlantic seaboard routes.

The fateful hurricane struck off the coast of Georgia and despite a two-day struggle by the crew to lighten the load, the vessel went down on October 25 1865.

The excavation of the SS Republic is expected to take several months and cost the company between £600,000 and £1.8m.