In the end it was a small vessel that provided answers to some very big – and expensive questions.

When the waters of the Magellan Strait between Argentina and Chile were finally calm, all it took was a remotely operated submarine to locate the Polar Mist, a modern-day treasure ship that went down in January.

But the sub found more than just the ship. Days after locating the sunken vessel, the crew of the tugboat C-Sailor, part of a larger salvage operation, found more than 9 tons of unrefined silver and gold, a haul valued at $22 million.

It wasn't much as treasures go – some are valued in the billions – because it was not historic. But the discovery put an end to a modern-day maritime mystery that raged for six months as authorities and onlookers speculated wildly about the fate of Polar Mist's cargo – theories that ran from piracy and theft to insurance fraud.

Cargo is brought on board the Polar Mist before she went down -- really expensive cargo.

IN THE MIST

The story of the Polar Mist began on January 14, in the Patagonian port of Punta Quilla. The trawler had been commissioned to take a cargo of about 9.5 tons of gold and silver to the Chilean port of Punta Arenas. The cargo was insured for about $18 million. Once landed in Chile, the metals were to be transported on from Punta Arenas to Santiago de Chile, and then flown to Europe for refining.

But on January 16, the Argentinian navy received a distress signal from the Polar Mist. A fierce Atlantic storm, with winds gusting to more than 60 miles per hour, had caught up with the ship. A rescue operation was launched and the trawler's 8-person crew was lifted to safety by a navy helicopter. The captain of the Polar Mist left his ship behind, with the engines set to steer the vessel in a circle to burn fuel and avoid an ecological disaster if it were to sink.

The following day, the Chilean tugboat Beagle came upon the abandoned vessel. For its captain, Sergio Mayorga, it must have felt like a seafarer's dream come true: an unmanned fishing trawler stocked with tons of gold and silver in its hold. On the evening of January 17, Mayorga hooked up the vessel in tow, hoping for rewards and riches. But, just hours later, the wreck of Polar Mist would lay 246 feet below surface, on the floor of the Atlantic.

According to Mayorga, his ship involved itself for what he termed "humanitarian reasons" – namely, to avoid a massive fuel leak. To Jorge Palmés, general manager of Cerro Vanguardia, owners of seven tons of the booty, however, the claim sounded "like an excuse."

"They were found towing the ship away from Argentina and our navy had to order them to turn around," he said. Did the crew of the Beagle try to steal the valuable cargo in an act of modern-day piracy? "That's unknown. But observers say they could have tried to get the Polar Mist out of Argentinian and into international waters. Common shipping law might be applied and they could have demanded a reward of five to 10 percent of the cargo," Palmés say. For Mayorga and his men, it would have been a check of up to $2 million.

Following the commands of the Argentinian navy, the Beagle began towing the Polar Mist toward Rio Gallegos, the capital of Santa Cruz. But the ship never arrived. Just before midnight, Mayorga reported that the Polar Mist had taken on water and was listing to port. He cut the towing wire, he said, and not much later, the Polar Mist headed for the ocean floor.

Argentinian authorities had their doubts and called the event "an inexplicable mystery."

"The ship was in good condition and the weather was optimal at the time when the towing was attempted," said Roque Mandatto, prefect of Rio Gallegos, who was quoted in an Argentine newspaper.

Mayorga defended his actions saying that he had been sent to take pictures of the Polar Mist by his agency and was ordered to recover the ship once he had reported contact. He alleges the authorities of Cabo Virgenes told him to carry the ship to Rio Gallegos.

ACT OF GOD OR FRAUD?

For all involved it was unclear whether the cargo was still on-board the sunken vessel. A media frenzy followed. Had the gold and silver been stolen? Or was this an act of insurance fraud?

When asked for payment of $16.5 Million, the main insurance underwriter of the cargo, the Lloyd's syndicate Ascot, decided to initiate a salvage operation to get to the bottom of the Polar Mist mystery.

A world class team of experts was assembled. The international law firm Ince & Co, which specializes in international shipping law and often involved in negotiations with pirates, was brought in to oversee the legal proceedings. The Dutch salvage specialists from the company Mammoet, who made headlines in 2001 when they recovered the wreck of the Russian nuclear submarine Kursk from the depths of the Barents Sea, joined the team. And, the Norwegian high-tech vessel Skandi Patagonia and its crew. The estimated cost of the operation: $3 million.

After her sinking, questions swirled around the fate of Polar Mist and her cargo worth millions.

SCUTTLED SALVAGE

It took longer than expected to get the Skandi Patagonia to Punta Quilla, to assemble the tactical divers and to take on a team of investigators from the Argentine prefecture, but on April 15 the operation was ready to begin. Except that it didn't.

Two Argentinian marine labor unions delayed the departure of the ship with demands. They wanted the upfront payment of $300,000, citing an old shipping law that guarantees "a share of the prize" to the crew of a ship that lifts valuables from the ocean.

Meanwhile, the Norwegian company, DOF Management AS, owner of the Skandi Patagonia, started charging $80,000 a day for the ship's use. To further complicate matters, the operation was beginning to run out of time as the oil company Total Austral, the regular user of the Skandi Patagonia, expected the ship back to continue drilling operations in the South Atlantic.

Another start date was set for April 17. But again, the Skandi Patagonia didn't lift anchor. Then came more rumors: alleged bribes from the marine unions to scuttle the expedition and talk of bored divers who didn't want to work. Three days later the mission was officially aborted.

Infuriated, Argentinian authorities, who permitted the salvage operation and had sent two of their own agents, initiated a criminal investigation and questioned everyone that had been on board the Skandi Patagonia as to why the ship didn't leave port.

It has been suggested that activists of the labor unions prevented the ship from leaving which, if proven to be true, could lead to criminal charges. An investigation, officials say, is ongoing.

SECOND SALVAGE

But even after the disastrous first salvage attempt, the insurer of the cargo didn't give up hope that the gold and silver were still at the bottom of the Atlantic, under 260 feet of water. To avoid more trouble with Argentinian labor unions, salvage specialists obtained a special permit to work with a foreign crew. In June, the Vanuatuan ship C-Sailor and its Brazilian crew arrived in Patagonia to solve the mystery.

It was with the help of their sub that C Sailor was able to confirm that the precious metals were still on board Polar Mist. By mid-July, divers managed to salvage one of more than 9 tons, valued at $22 million, from the sunken ship.

On August 3, Mammoet officially announced that they had salvaged almost the entire cargo – roughly 400 kilograms were lost to the ocean.