Hunters believe they have found 'Treasure Island'

Treasure hunters believe they have found a legendary trove of 18th century jewels and gold coins worth US$10 billion on Chile's Robinson Crusoe island, the company that bankrolled the expedition says.

Robinson Crusoe lies 700km west of Chile's central coast in the Pacific, and was a refuge for corsairs crossing the vast ocean.

Legend has it that Spanish navigator Juan Esteban Ubilla y Echeverria stashed a fortune on the island in 1715. It was found by a British sailor, Cornelius Webb, and taken to another area of the island to be buried again.

Members of the expedition, using a metal-detecting robot, believe they have pinpointed the site.

They will start digging within days once permits have been granted.