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Archeologists have uncovered a cave under the ruins of Emperor Augustus’ palace on the Palatine, a 230-foot-tall (70-meter-tall) hill in the center of the city.
According to the National Geographic news:

Archaeologists say they have unearthed Lupercale-the sacred cave where, according to legend, a she-wolf nursed the twin founders of Rome and where the city itself was born.

The report states that archaeologists of Cultural Heritage of the Rome Municipality unearthed the cave as they were working to renovate the dilapidated palace.
Irene Iacopi, the archaeologist in charge of the area, said:

We were drilling the ground near Augustus’ residence to survey the foundations of the building when we discovered the cave. We knew from ancient reports that the Lupercale shouldn’t be far from the Emperor’s palace, but we didn’t expect to find it. It was a lucky surprise.

It is said that Palatine hill was once a home of rich roman citizens that lived here in 500 B.C. It was Augustus who built palaces on the top of the hill while Roman republic turned as Roman Empire. Successors of Augustus pursued his work and built relatively large palaces on the same area.

Via: Nationalgeographic