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AAP
AAP
Tom Wark

Century-old mystery unmasked by volunteer divers

The first images of a shipwreck taken by volunteer divers could help solve a century-old riddle. (HANDOUT/Sydney Project)

One of Australia's most baffling maritime mysteries is in the spotlight after four divers captured incredible images of a century-old shipwreck.

Diving to depths of 160 metres off the coast of Wollongong in NSW, volunteer divers from the Sydney Project are the first people to lay eyes on the coal ship SS Nemesis since its disappearance in 1904.

The Nemesis vanished in a storm after leaving Newcastle for Melbourne with a full hold on July 8, sinking with all 32 crew on board.

The wreck's whereabouts were unknown for more than 100 years until a remote sensing company stumbled across the coal ship while trying to locate cargo containers lost off the Sydney coast.

The CSIRO has completed mapping of the wreck using remote-operated vehicles but the leader of the Sydney Project dive team says nothing compares to laying human eyes on a long-lost ship.

"We saw there is the cradle for the lifeboats, which was cool to see because you don't normally see these things intact on other shipwrecks," Samir Alhafith told AAP.

"Seeing things like a steam relief valve on the wreck, no one knew before this was actually a steam ship."

The shipwreck of the SS Nemesis
The long-lost vessel, although damaged, has been well preserved and is a haven for marine life. (HANDOUT/Sydney Project)

A century in the making, the four divers involved in the June 18 expeditions took nine minutes to reach the wreck and spent a further nine minutes surveying the wreckage.

Mr Alhafith says the Nemesis is a unique wreck because it has significant damage at both the front and rear of the ship but other parts of the hold are well-preserved.

The coal ship has since become a haven for thousands of fish including wobbegong sharks, although the human cost of the tragedy is not lost on the divers.

"You're looking at a lump of metal on the ground but there is a human connection to this particular object and in this case, there are relatives that lost their loved ones," Mr Alhafith said.

Heritage NSW assessments director Tim Smith was full of praise for the divers' "incredible feat" and said the information and images gathered will be invaluable for understanding the demise of the ship.

"These four divers have shone a light on the vessel's rich legacy, capturing never-seen-before footage of the ship up close," Mr Smith said in a statement.

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