In 1943, a Royal Australian Navy minesweeper corvette, on a passage from Townsville to Brisbane clearing the shipping lanes off the Queensland coast mined at the beginning of the Second World War, fouled on an obstruction believed to be a shoal, but which was not investigated at this time.

In 1947, the Royal Australian Navy Hydrographic vessel HMAS Lachlan, while heading north to king Sound via Darwin with the tender Brolga. Lachlan stopped to examine the obstruction using anti-submarine equipment and an echo sounder. The obstruction was reported to appear to be a sunken ship, and presumed to be that of SS Yongala. Lachlan then continued northwards. No further action was taken, leaving Yongala in peace for another eleven years.

In 1958, the wreck was found once more. George Konrat, a salvage and construction diver from Cairns, and one of the self-styled 'finders', described the first recorded dive made on the site. He identified the wreck as that of the Yongala by the lettering of the name on the bow.

Konrat's salvage partner, and the other 'finder' of the wreck, was Bill Kirkpatrick, the skipper of the dive boat from which Konrat was working. On their return to land however, neither could substantiate that the wreck they had dived was the Yongala although Konrat's further description of an animal cage on the deck left little doubt.

Kirkpatrick continued to dive on the wreck with members of the Queensland Underwater Research Group (QURG), although positive identification remained elusive as subsequently they were not able to find the name on the bow. They raised several artefacts, including a safe found in the purser's cabin, and it was anticipated that any papers remaining inside would prove the wreck's identity. The following day and in the presence of customs officers, the safe was 'smashed open' but contained nothing but sludge.

The photograph of the safe published on 7 October 1958 in the Townsville Daily Bulletin was seen by the manager of Chubb's safes in Queensland. He believed it to be a Chubb's safe by the way the door was 'hung on the left', and sent the details of a partial serial number found on the door tongue to England for identification. The makers' serial number eventually confirmed it as the Chubb safe that had been supplied to Armstrong, Whitworth and Company for Yongala, and which had been installed in the purser's cabin.

Scuba Divers since established that both anchors are housed on the wreck. Subsequent investigation of the hull showed the hull intact, little ballast in the hull and some of the portholes were in the open position. The theories of a collision as well as the anchors being laid to ride out the storm were now discounted. Evidence indicated that Captain Knight was steaming ... probably towards Townsville, his intended destination. The portholes were probably open to provide the only ventilation to the cabins below decks in the heavy weather.

The cyclonic weather was reported as coming from the North West and taking into account the wreck location off Cape Bowling Green, the reach was unhindered across 25 nautical miles of open water. The depth in this area is relatively shallow at 20 to 30 mtrs and combined with tidal run would heighten the wave peaks and troughs in gale force conditions.

In continuing towards Townsville and safe haven, heading into monumental seas, the Yongala began to take solid water over the bows and onto the foredecks.

From this point on it is purely supposition based on experienced coastal Captains' observations - these men were familiar with the area around Cape Bowling Green.:

1. The Yongala continued to steam into the weather, floundered by the bow, after taking water through the forward hatch and sunk
2. The Yongala decided to run with the weather, broached because of her narrow beam and lack of ballast and capsized
3. Any manoeuvre by the Yongala away from the bow quarter resulting in a beam on situation in these conditions would heighten the risk of a capsize.

The fact that no life rafts or life saving equipment were found indicated the fate of the Yongala was sudden and fatal.