When they returned in the afternoon, it was still there and they "decided to act on it and that is when they found Mr Kerr's body", Tasman police communications manager Barbara Dunn said.
A search and rescue abseil team were called in to recover the body yesterday.
One local man, who did not wish to be named, found out last night that Mr Kerr had died. "I knew him all my life. It was a bit of a shock. He hadn't been in good health, he had a few ailments, but he was OK," the man said. "He was a good guy, old Rowan."
Mr Kerr was the subject of an extensive missing persons hunt last October after his family reported him missing when he became lost after setting out to visit his daughter in Christchurch. He was found the next day some 65km south of his destination by a resident in Ellesmere.
Locals say Mr Kerr was well-known in Kumara. He had worked in the local post office before spending the majority of his working life as a gold dredge worker on the Taramakau River.
Additional reporting Greymouth Star