I.F.C. cancels funds for Ecuador dredging

Disappointing returns from bucket-line dredging at the Los Lilenes alluvial gold operation in Ecuador have prompted the International Finance Corp. (an affiliate of the World Bank) to cancel its financial commitment in the project. Meanwhile, Osborne and Chappel Goldfields (TSE) are considering switching to a giant excavator for the dredging operations. Since operation startup a few years ago, production has been hampered by large boulders within the gold- bearing gravel. The small, bucket- line dredge is incapable of handling the boulders and is easily damaged by them.

Osborne will approach International Finance for more funding when they have determined the best way to mine the deposit.