The precious ornament, known as 'nagapatathali' in local parlance, was found when the well close to the sanctum sanctorum was dried for clean up after the water turned muddy.
This is one of the three ornaments that went missing in 1985. Two other gold chains, weighing 60 and 40 grams each, is yet to be traced, temple authorities said.
They examined the recovered ornament and confirmed it as the missing item.
It was earlier considered as a theft case and some priests were interrogated as part of the investigation.
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