"Tragically, we have no option than to accept that Mr Oliver has been swept into the gorge and been drowned," Wanaka police search and rescue co-ordinator Sergeant Aaron Nicholson said.
"We are certain that we know where Mr Oliver went into the gorge, and we are certain that he has not come out.
"This is a very dangerous area and in the absence of any further clues there is unfortunately little else that we can do."
He said the gorge area above 'Jumboland' was a relatively short, 300m jumble of huge boulders and raging water.
Eight searchers, including four river rescue specialists, spent yesterday searching a 1km-long area of the river, including the gorge, on foot and by air.
A further ground and air search was carried out today, but search and rescue volunteers were still unable to locate Mr Oliver.
Wanaka search and rescue spokesman Phil Melchior said even though the river was currently relatively low, it unfortunately had areas that "simply cannot be searched".
"It would be like trying to search inside a giant washing machine which cannot be turned off."
He said said sending volunteers to search in wilder parts of the area would be like dumping people in the giant, unstoppable "washing machine".
Mr Melchior said searchers reported that even before the start of the gorge itself, the water was running so swiftly that it was difficult to stand up in, even calf-deep.
"Anyone losing their balance while trying to cross had almost no chance of getting out again once in the gorge," Mr Melchior said.
Police said the matter would now be referred to the coroner.