For more than 200 years, the Treasure of Lima has inspired treasure hunters, historians, and adventurers to search the remote jungles of Cocos Island. While Wafer Bay often receives the most attention, many researchers believe another location deserves equal consideration: Chatham Bay.
Located on the western side of Cocos Island, Chatham Bay offers many of the same advantages as Wafer Bay but with several unique characteristics that could have made it an even better hiding place for one of history’s greatest lost treasures.
Could Captain William Thompson and his crew have secretly unloaded the treasure here instead? Was Chatham Bay chosen because it was quieter, more secluded, or easier to defend? While no definitive evidence has ever surfaced, the theory has remained one of the strongest alternatives in the Treasure of Lima legend.
Let’s examine why Chatham Bay continues to fascinate modern treasure hunters.
According to legend, Spanish officials in Lima, Peru, feared that revolutionary forces would seize the city’s enormous wealth during the wars of independence in 1820. They supposedly loaded vast quantities of gold, silver, emeralds, diamonds, church relics, and priceless artwork aboard the merchant ship Mary Dear.
The ship’s captain, William Thompson, allegedly betrayed his Spanish employers. Instead of transporting the treasure to safety, Thompson and his crew murdered the guards and sailed into the Pacific with the treasure.
Unable to openly sell or transport such an enormous fortune, the crew supposedly buried it on Cocos Island before disappearing.
The only question is where.
Why Chatham Bay Deserves More Attention
Many discussions about the Treasure of Lima focus almost exclusively on Wafer Bay, but Chatham Bay possesses several advantages that historians believe deserve serious consideration.
Unlike the steeper northeastern shoreline, Chatham Bay features broad beaches and relatively gentle access to the rainforest. Landing heavy cargo would have been easier for sailors carrying large wooden treasure chests filled with precious metals.
The bay is also naturally sheltered, allowing ships to anchor safely while crews worked ashore.
If Thompson planned a temporary stop, Chatham Bay would have been an excellent choice.
A Quieter Anchorage
One of the strongest arguments supporting Chatham Bay is privacy.
Historical ships frequently visited Wafer Bay to collect fresh water. Because it was already a known anchorage, there was always the possibility that another vessel might unexpectedly arrive.
Chatham Bay, by contrast, may have offered greater isolation.
If Captain Thompson wanted to avoid witnesses while unloading one of the greatest fortunes in history, selecting a quieter location would have reduced the risk of discovery.
For pirates and mutineers, secrecy meant survival.
Easier Access to the Jungle
The dense rainforest surrounding Chatham Bay begins almost immediately beyond the beach.
Within minutes, explorers encounter:
Thick tropical vegetation
Narrow valleys
Volcanic ridges
Waterfalls
Large boulders
Dense tree cover
These natural features provide countless opportunities to conceal valuable cargo.
Unlike open landscapes where disturbed soil remains visible, tropical rainforests quickly reclaim freshly dug ground.
After only a few weeks, signs of excavation might disappear entirely beneath new vegetation.
The Fresh Water Advantage
Fresh water was essential for every sailing vessel in the early nineteenth century.
Fortunately for treasure hunters, Chatham Bay contains several streams flowing from the island’s mountainous interior.
These waterways would have supplied drinking water while also serving as convenient landmarks.
Many treasure legends mention directions involving streams, forks in rivers, waterfalls, or springs.
If Thompson intended to return someday, using permanent natural features would have made navigation much easier than relying on temporary markers.
Natural Defensive Terrain
Another reason Chatham Bay remains attractive is its geography.
The surrounding hills rise sharply from the coastline, providing commanding views over the bay.
Anyone hiding treasure could watch approaching ships from elevated positions long before visitors reached shore.
This natural surveillance would have allowed Thompson’s crew to avoid unwanted encounters during their operation.
Steep ravines and dense vegetation also created numerous escape routes if necessary.
The Cave Possibility
Like much of Cocos Island, Chatham Bay features volcanic cliffs containing caves and rock shelters.
Some treasure researchers believe the Treasure of Lima was never buried at all.
Instead, they argue the crew simply hid the treasure inside naturally occurring caves.
This theory offers several practical advantages.
A cave requires:
No extensive digging
Less physical labor
Better protection from heavy rainfall
Easier recovery during a future voyage
Because many coastal caves remain difficult to access, some may never have been thoroughly examined.
Historical Treasure Expeditions
Throughout the nineteenth and twentieth centuries, numerous expeditions searched areas surrounding Chatham Bay.
Some focused specifically on reports left by earlier treasure hunters.
Others followed maps claiming to reveal hidden landmarks.
While several explorers reported finding old campsites, rusted tools, and isolated artifacts, no expedition has uncovered definitive proof of the Treasure of Lima.
Even so, repeated searches demonstrate that serious treasure hunters have long considered Chatham Bay a credible candidate.
The Challenge of Moving So Much Treasure
One criticism of every Treasure of Lima theory involves logistics.
Historical descriptions suggest the treasure included:
Thousands of gold coins
Silver ingots
Gold bars
Emeralds
Jewelry
Religious artifacts
Ornate statues
Church valuables
The combined weight may have reached several hundred tons according to some estimates.
Transporting that much cargo deep into the jungle would have required enormous effort.
For this reason, many researchers believe the treasure—if it existed—must have been hidden relatively close to the shoreline.
Chatham Bay’s gentle beaches make this scenario more plausible than many inland theories.
Changing Landscapes
Modern visitors often underestimate how dramatically Cocos Island changes over time.
The island receives enormous amounts of rainfall every year.
As a result:
Rivers shift course.
Hillsides collapse.
Trees fall.
Soil erodes.
New vegetation rapidly grows.
A location carefully selected in 1820 could look completely different today.
Some treasure hunters even speculate that the original hiding place now lies beneath several feet of sediment deposited by landslides over the past two centuries.
Modern Technology Hasn’t Solved the Mystery
Today’s explorers possess tools that early treasure hunters could never imagine.
These include:
LiDAR scanning
Drone mapping
GPS surveying
Ground-penetrating radar
Geological analysis
Digital terrain modeling
Yet despite these advances, the Treasure of Lima remains undiscovered.
One reason is that Cocos Island is now a protected national park.
Large portions of Chatham Bay remain untouched because digging is illegal.
Ironically, environmental protection may have preserved the island’s greatest mystery.
Could Someone Have Recovered It Already?
Not every historian believes the treasure is still on Cocos Island.
Alternative theories suggest:
Captain Thompson secretly returned.
Another pirate crew discovered it.
An early treasure expedition recovered part of the cache.
The treasure was never buried on Cocos Island at all.
However, no verified discovery matching the legendary descriptions has ever been documented.
Such an enormous collection of colonial gold and religious artifacts would almost certainly attract worldwide attention if it surfaced today.
Its continued absence keeps Chatham Bay firmly in the conversation.
Comparing Chatham Bay to Wafer Bay
Supporters of Chatham Bay often point to several advantages over Wafer Bay.
Chatham Bay
Wafer Bay
Greater privacy
More frequently visited historically
Broad landing beaches
Excellent freshwater access
Dense jungle nearby
Numerous treasure legends
Elevated lookout points
Better-known historical anchorage
Possible cave systems
Most searched location
Because both bays possess strong advantages, many researchers believe Thompson could have visited both during the same voyage.
Some even speculate that multiple treasure caches were hidden in different locations across the island.
Why Chatham Bay Remains One of the Best Theories
Despite nearly two centuries of searching, Chatham Bay continues to rank among the strongest candidates for the Treasure of Lima’s hiding place. Its combination of secluded anchorages, accessible beaches, dense rainforest, freshwater sources, and natural caves aligns remarkably well with what a crew of mutineers would have needed if they intended to hide a fortune temporarily.
While there is no conclusive evidence placing the treasure there, there is also nothing that definitively rules the bay out. Every failed expedition leaves open the possibility that searchers simply looked in the wrong valley, the wrong cave, or the wrong section of forest.
Until archaeologists uncover undeniable proof—or someone discovers the legendary cache itself—Chatham Bay will remain one of Cocos Island’s greatest mysteries. Whether the treasure rests beneath centuries of jungle growth, inside a forgotten lava cave, or was removed long ago, the bay continues to fuel one of history’s most captivating treasure legends.
