His body was found at 11.30am in a creek bed at the bottom of a 60m bank, in an area known as Canyon Creek, Mr Smith said. Canyon Creek is about 3km from the Dingle Burn Track.
Mr Smith, who searched on his day off on Saturday, was part of a team of more than 20 volunteers including members of the Omarama, Waimate, Oamaru and Dunedin search and rescue groups, two search dogs from Dunedin and their handlers, and a friend of Mr Palmer's.
The search had been a "huge" operation, he said, with Omarama SAR members alone having spent 400 hours searching the area. Mr Palmer's family organised a private helicopter to assist with the search, and the owner of the nearby Dunstan Downs Station donated his own helicopter and time to help out.
Mr Smith said he was "in awe" that Mr Palmer's body was found.
"From the creek bed to the top is about 60m and the bank is on about a 50-65 degree angle."
A specialist mountain rescue team and chopper were called in to recover the body.
Mr Palmer, described by Ms Lukeman as "a resilient, experienced tramper", was raised in Oamaru and educated at Waitaki Boys' High School.
She said Mr Palmer's family and friends wanted to thank everyone who had been involved in search - search and rescue, police, volunteers, the Omarama community which provided searchers with meals, and the helicopter company which donated its time and helicopter.
"They have been amazing and we deeply appreciate their dedication and determination to bring Dave home."