Hope dimmed for rescuers seeking a Brooklyn man and his two climbing buddies on Oregon’s Mount Hood yesterday when the body of one of the adventurers, Kelly James of Dallas, was found in a snow cave.

Searchers found a snow cave Sunday near the spot located by cell phone signals traced from James, who made a four-minute call to his family Dec. 10 just below the summit, said Jessica Nunez, a spokeswoman for the climber’s family.

The discovery was made just before sundown – a blow to rescuers who only hours earlier had what they thought was their biggest break in days.

“Our hearts are going out to the families right now,” said Capt. Mike Braibish of the Oregon National Guard. “We remain optimistic; we remain hopeful. We’re going to still collect information and we continue to proceed with this as a rescue for the two remaining climbers.”

The identity of the dead climber was not immediately released. The body was left on the mountain last night because darkness and subzero temperatures made it too dangerous to bring him down.

Rescuers will ascend the mountain this morning to recover the body and resume the search.

Crews began searching the area yesterday after a helicopter crew spotted a giant “Y” made of ropes on the mountainside and interpreted it as an SOS left by the missing mountaineers.

It was a heartening sign – one of the best in the week-long search. As families and friends waited for news, rescuers were airlifted to the cave. But it contained only equipment and a sleeping bag believed to be left by Jerry (Nikko) Cooke, 36, ofBay Ridge, and his Texas palsKelly James, 48, and Brian Hall, 37.

As searchers fanned out in the area, a second snow cave sheltering the body was found, Braibish said.

“Our climbers did get inside the snow cave and have confirmed that there is one fatality,” Braibish said.

Officials said footprints were spotted heading away from the snow cave, some tracks heading up to the summit and others heading down. But there were no other signs of the stranded men.

Sheriff’s officials said the two snow caves are in the area where James made a desperate cell-phone call to his family on Dec.9, saying he was in a snow cave. The last clue to the men’s whereabouts was a brief signal returned from James’ cell phone Tuesday.

Cooke, James and Hall began what should have been a two-day climb up the mountain on Dec. 7.

Tense family members gathered with sheriff’s officials last night and were told a climber’s body was found. The families, however, went to bed last night without knowing which of their loved ones died on the mountain.

Pacing during a morning news conference before the body was found, Hall’s father, Dwight Hall, said in a cracking voice that the families had “no reason to have other than high optimism in this operation.”

But the the three men’s relatives were riding an “emotional roller coaster,” added Frank James, Kelly James’ brother.

“The families remain prayerful,” he said.

Crews ascended the mountain beginning at 4 a.m. Pacific time on what turned out to be a clear, sunny day.

Air National Guardsmen piloted Chinook helicopters capable of flying at high elevations after wind kept rescuers from getting above 10,600 feet on Saturday.

The “Y” in the snow sent a charge through crews frustrated by days of dangerous weather conditions that limited rescue operations last week. But the abandoned cave raised questions about when the men left the signal in the snow.

“We don’t know when it was put there. It could have been there for a while,” said Sgt. Gerry Tiffany of the Hood River County sheriff’s office.

In Bay Ridge, neighbors were watching the news, praying that Cooke was among the two missing hikers still alive.

His tenant Freddy Herrera, 20, said he was “devastated and shocked” at the reversal of fortune on Mount Hood yesterday. But he remained optimistic.

“I have no doubt that Jerry will come back home alive,” he said. “They have enough food for one week.”

Colleagues of Cooke who know his fortitude were anxious as rescuers came off the mountain at sundown.

“This is extremely harsh news to receive now,” said Michael Jaffe, executive vice president of Countrywide Insurance, where Cooke works as a lawyer. “Irrespective of which of the three has unfortunately lost their life, we share the grief.”