After more than 113 years and endless speculation, a long-lost Russian warship shrouded in mystery and suspected of containing billions of dollars’ worth of treasure has finally been found thanks in part to a team of Canadian explorers.

The hulking 5,800-tonne, armoured cruiser called the Dmitrii Donskoi sank off the coast of the South Korean island Ulleungdo in 1905 during the Russo-Japanese War, a major military conflict won by Japan that set the stage for the First World War.

The Dmitrii Donskoi first set sail from Saint Petersburg in 1885 and served for 20 years in the Baltic Sea and the Mediterranean before the war in the Pacific. It was part of Russia’s powerful Baltic Fleet before it was scuttled by its crew after Japan’s victory in the pivotal Battle of Tsushima.

On Tuesday, the South Korean salvaging company Shinil Group announced that it had located the elusive ship wreck 434 metres from Ulleungdo Island two days earlier.

The Seoul-based company said it worked with a team from Nuytco Research Ltd., a Canadian marine exploration company, which provided two small “DeepWorker” submarines for the mission.

The submarines first searched the “estimated area of sinking” on Saturday.

"We expected to be probably several weeks doing what we call mowing the lawn," Phil Nuytten, President of Nuytco Research, explained to ŰÎŰ´ŤĂ˝. "Going back and forth, back and forth, back and forth to cover the sea bed."

But they were surprised to get results in the first two days, finding a ship that was “100 per cent identical to the Donskoi’s sail plan,” according to a Shinil Group news release.

The next day, the company sent the exploration team back in the water to confirm the ship’s identity. The team was able to spot a nameplate located on the ship’s stern.

“It was confirmed as Donskoi,” the statement said.

The explorers also spied 203 mm cannons, 152 mm long-distance guns, machine guns, anchors, two stacks, three masts, wooden decks and armour on the ship, according to Shinil Group.

Video of the wreckage released by the company shows the ship’s guns, steering wheel, and exterior coated in thick algae from its years beneath the sea.

According to Shinil Group, the Dmitrii Donskoi’s stern was found resting on a slope of the seabed 380 metres below sea level and the bow was located at a depth of 430 metres.

“A third of the stern is bombarded and the hull is severely damaged,” the company said.

The three masts and the two chimneys were also broken. However, the upper deck of the wooden hull was nearly “untouched.” Additionally, the armour on the side of the hull is “well preserved” and features such as the anchors, guns, and machine guns were intact, the release said.

Bountiful booty

Perhaps the most intriguing find from the mission was the discovery of a “large amount” of iron boxes in the ship’s stern. The boxes have fueled speculation that they house a large amount of gold rumoured to be aboard the ship at the time of its sinking.

There have been persistent reports in the more-than-a century since its disappearance that the Dmitrii Donskoi contained 200 tonnes of gold bars and coins, estimated to be worth US$132 billion today.

Nuytten said the fact that the ship was scuttled by the captain, rather than allowing it to fall into the hands of the Japanese, may give some credence to the rumour.

It’s believed the loot was intended for the Russian fleet; however, some Russian scholars have said it’s unlikely that much gold would have been transported on a single ship in those days and that transporting it by train would have been the safer option.

"As far as whether the treasure is there or not, it's very difficult to say," Nuytten said. "We won't know for sure until salvage work is started on it, presuming they get permits to do so."

Nuytten's team is undertaking a comprehensive video survey of the wreck, to give the Shinil Group a better understanding of their options to retrieve the ship.

The company said it’s hoping to hoist the wreckage from the ocean in order to examine it and its iron boxes more closely in the late fall.

If indeed the treasure is found aboard the ship, there will be some inevitable questions concerning its ownership. It’s expected it would be divided up somehow between Russia, South Korea, and the company credited with its discovery.

With files from The Associated Press and a report from ŰÎŰ´ŤĂ˝' Alberta Bureau Chief Janet Dirks