<PAGE>  1
==============================================================================

                   U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[  X  ]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1997

[     ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the transition period from         to       
                                                ------    ------

                       Commission File Number:  000-25132

                                 ICHOR CORPORATION
            (Exact name of Registrant as specified in its charter)

               Delaware                                 25-1741849
   (State or other jurisdiction of                   (I.R.S. Employer
    incorporation or organization)                    Identification No.)

    Suite 1250, 400 Burrard Street
      Vancouver, British Columbia                           V6C 3A6
(Address of principal executive offices)                  (Zip Code)

                                  (604) 683-5312
                (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
Yes    X     No        
    -------     -------

Indicate the number of shares outstanding of each of the Registrant's classes 
of common stock, as of the latest practicable date:

               Class                      Outstanding at November 10, 1997
               -----                      --------------------------------
         Common Stock, $0.01                             4,907,520
            par value
==============================================================================

<PAGE>  2

FORWARD-LOOKING STATEMENTS

Statements in this report, to the extent that they are not based on historical
events, constitute forward-looking statements.  Forward-looking statements 
include, without limitation, statements regarding the outlook for future 
operations, forecasts of future costs and expenditures, evaluation of market 
conditions, the outcome of legal proceedings, the adequacy of reserves or 
other business plans.  Investors are cautioned that forward-looking statements
are subject to an inherent risk that actual results may vary materially from 
those described herein.  Factors that may result in such variance, in addition
to those accompanying the forward-looking statements, include changes in 
interest rates, prices and other economic conditions; actions by competitors; 
natural phenomena; actions by government authorities; uncertainties associated
with legal proceedings; technological development; future decisions by 
management in response to changing conditions; and misjudgments in the course 
of preparing forward-looking statements.


                          PART I.   FINANCIAL INFORMATION
                                    ---------------------

ITEM 1.    FINANCIAL STATEMENTS



                                ICHOR CORPORATION

                        CONSOLIDATED FINANCIAL STATEMENTS

                   FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997

                                   (Unaudited)




















                                       -2-


<PAGE>  3
                               ICHOR CORPORATION
                          Consolidated Balance Sheets
                                  (Unaudited)
                             (dollars in thousands)

                                       September 30, 1997    December 31, 1996
                                       ------------------    -----------------
                                                                 (Restated)

                                      ASSETS
Current Assets
  Cash and cash equivalents              $           93        $          628
  Cash held in escrow                               763                 1,254
  Accounts receivable, less allowance
    for doubtful accounts                           725                   434
  Costs and estimated earnings in excess
    of billings on uncompleted contracts              -                   419
  Prepaid expenses and other                        287                   157
  Net assets of discontinued operations               -                    71
                                         --------------        --------------
    Total current assets                          1,868                 2,963

Property and Equipment, net                       4,087                 3,544
Other Assets                                        146                    39
                                         --------------        --------------
                                         $        6,101        $        6,546
                                         ==============        ==============

                       LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
  Accounts payable                       $          869        $          531
  Other accrued liabilities                         450                   282
  Due to affiliate                                  683                   420
  Current portion of long-term debt                  32                   454
                                         --------------        --------------
    Total current liabilities                     2,034                 1,687

Long-term Liabilities
  Debt                                            1,029                   492
  Due to parent company                             825                 1,425
  Other                                           1,166                   955
                                         --------------        --------------
                                                  3,020                 2,872
                                         --------------        --------------
    Total liabilities                             5,054                 4,559

Shareholders' Equity
  Preferred stock                                   600                     -
  Common stock                                       50                    50
  Additional paid-in capital                      5,743                 5,743
  Retained deficit                               (5,275)               (3,754)
                                         --------------        --------------
                                                  1,118                 2,039
  Less cost of shares of common
    stock held in treasury                          (71)                  (52)
                                         --------------        --------------
    Total equity                                  1,047                 1,987
                                         --------------        --------------
                                         $        6,101        $        6,546
                                         ==============        ==============

    The accompanying notes are an integral part of these financial statements.


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<PAGE>  4
                               ICHOR CORPORATION
                     Consolidated Statements of Operations
                                  (Unaudited)
               (dollars in thousands except per share amounts)

                                     For the Nine          For the Nine
                                     Months Ended          Months Ended
                                 September 30, 1997     September 30, 1996
                                 ------------------     ------------------
                                                            (Restated)

Revenues                         $          2,034        $             -
Cost of sales                               2,229                      -
                                 ----------------        ---------------
                                             (195)                     -
Selling, general and
  administrative expenses                     525                    806
                                 ----------------        ---------------
Loss from operations                         (720)                  (806)

Interest expense                             (574)                  (312)
                                 ----------------        ---------------
Loss from continuing operations
  before income taxes                      (1,294)                (1,118)
Provision for income taxes                      -                     15
                                 ----------------        ---------------
Loss from continuing operations
  after income taxes                       (1,294)                (1,103)

Discontinued operations:
  Loss from operations                       (286)                  (478)
  Gain (loss) on disposal                      59                   (840)
                                 ----------------        ---------------
                                             (227)                (1,318)
                                 ----------------        ---------------

Net loss                         $         (1,521)       $        (2,421)
                                 ================        ===============

Net loss per common share:
  Continuing operations          $          (0.26)       $         (0.45)
  Discontinued operations                   (0.05)                 (0.53)
                                 ----------------        ---------------
                                 $          (0.31)       $         (0.98)
                                 ================        ===============








   The accompanying notes are an integral part of these financial statements.

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<PAGE>  5
                               ICHOR CORPORATION
                    Consolidated Statements of Operations
                                  (Unaudited)
               (dollars in thousands except per share amounts)

                                        For the Three         For the Three
                                        Months Ended          Months Ended
                                     September 30, 1997    September 30, 1996
                                     ------------------    ------------------
                                                                (Restated)

Revenues                             $          1,078      $              -
Cost of sales                                   1,172                     -
                                     ----------------      ----------------
                                                  (94)                    -

Selling, general and
  administrative expenses                         181                   294
                                     ----------------      ----------------
Loss from operations                             (275)                 (294)

Interest expense                                 (196)                 (105)
                                     ----------------      ----------------
Loss from continuing operations
  before income taxes                            (471)                 (399)
Provision for income taxes                          -                    15
                                     ----------------      ----------------
Loss from continuing operations
  after income taxes                             (471)                 (384)

Loss from discontinued operations                 (86)                  (68)
                                     ----------------      ----------------
Net loss                             $           (557)     $           (452)
                                     ================      ================

Net loss per common share:
  Continuing operations              $          (0.09)     $          (0.15)
  Discontinued operations                       (0.02)                (0.03)
                                     ----------------      ----------------
                                     $          (0.11)     $          (0.18)
                                     ================      ================












   The accompanying notes are an integral part of these financial statements.

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<PAGE>  6
                                           ICHOR CORPORATION
                                  Consolidated Statements of Cash Flows
                                              (Unaudited)
                                        (dollars in thousands)
<TABLE>
<CAPTION>
                                                 For the Nine           For the Nine
                                                 Months Ended           Months Ended
                                              September 30, 1997      September 30, 1996
                                              ------------------      ------------------
                                                                          (Restated)
<S>                                           <C>                     <C>
Cash Flows from Continuing
  Operating Activities:
  Net loss from continuing operations	         $        (1,294)        $         (1,103)
  Adjustments to reconcile net loss to cash
   flows from continuing operating activities
   Depreciation and amortization                           118                      168
   Provision for losses on accounts receivable               -                      260

  Changes in current assets and liabilities
   Cash held in escrow                                     491                       81
   Accounts receivable                                    (291)                   1,057
   Costs and estimated earnings in excess of
     billings on uncompleted contracts                     419                      764
   Prepaid expenses and other                             (130)                       -
   Accounts payable                                         11                     (103)
   Billings in excess of costs and estimated
     earnings on uncompleted contracts                       -                       23
   Due to affiliates                                       263                     (123)
   Other accrued liabilities                               168                      (37)
   Other                                                  (107)                    (185)
                                               ---------------          ---------------
    Net cash (used in) provided by operating
      activities of continuing operations                 (352)                     802

Cash Flows from Continuing Investing Activities:
  Purchase of property and equipment                      (334)                    (124)
                                               ---------------          ---------------
    Net cash used in investing activities of
      continuing operations                               (334)                    (124)

Cash Flows from Continuing Financing Activities:
  Purchase of stock held in treasury                       (19)                       -
  Proceeds from debt                                       763                       39
  Principal payments on debt                              (437)                     (19)
                                               ---------------          ---------------
    Net cash provided by financing activities
      of continuing operations                             307                       20
                                               ---------------          ---------------
Net cash (used in) provided by continuing
  operations                                              (379)                     698
Net cash used in discontinued operations                  (156)                    (478)
                                               ---------------          ---------------
(Decrease) increase in cash and
  cash equivalents                                        (535)                     220
Cash and cash equivalents, beginning of period             628                       18
                                               ---------------          ---------------
Cash and cash equivalents, end of period       $            93          $           238
                                               ===============          ===============

          The accompanying notes are an integral part of these financial statements.
</TABLE>




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<PAGE>  7
                               ICHOR CORPORATION
                 Notes to Consolidated Financial Statements
                              September 30, 1997
                                  (Unaudited)

NOTE 1.  BASIS OF PRESENTATION

The accompanying financial statements of ICHOR Corporation, formerly PDG 
Remediation, Inc. (the "Corporation") are unaudited.  However, in the opinion 
of management, they include all adjustments necessary for a fair presentation 
of the financial position, results of operations and cash flows of the 
Corporation with respect to the specified periods.  

On September 4, 1996, the Corporation's Board of Directors voted to change the 
Corporation's fiscal year end from January 31 to December 31.

All adjustments made during the three months and the nine months ended 
September 30, 1997, respectively, were of a normal, recurring nature.  The 
amounts presented for the three months and the nine months ended September 30,
1997, respectively, are not necessarily indicative of results of operations 
for a full year. Additional information is contained in the statements and 
accompanying notes included in the Corporation's Transition Report on Form 10-
K for the 11 months ended December 31, 1996, and should be read in conjunction
with this quarterly report.

Certain reclassifications have been made to the prior year financial 
statements to conform with the current year presentation.

NOTE 2.  BUSINESS ACTIVITIES

The Corporation is in the environmental services business of recycling 
petroleum waste products and disposing of oily waste waters.  The Corporation 
operates a waste oil recycling facility located in McCook, Illinois which was 
brought on-line in the second quarter of 1997 and converts waste oil into 
distillate and other recycled petroleum products and processes and disposes of 
oily waste waters.

NOTE 3.  NET LOSS PER SHARE

Primary earnings per share are calculated by dividing the net loss by the 
weighted average number of common shares outstanding during the three months 
and the nine months ended September 30, 1997 and 1996, respectively.  The 
weighted average number of shares was 4,914,369 and 2,470,000 for the nine 
months ended September 30, 1997 and 1996, respectively, and 4,907,783 and 
2,470,000 for the three months ended September 30, 1997 and 1996, 
respectively.

Stock options and warrants have not been reflected as exercised for purposes 
of computing the primary loss per share for the three months and the nine 
months ended September 30, 1997 and 1996, respectively, since the exercise of 
such options and warrants would be anti-dilutive.



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<PAGE>  8

NOTE 4.  PREFERRED STOCK

On September 30, 1997, the parent company of the Corporation agreed to convert 
part of its loan due from the Corporation into non-redeemable shares of 
preferred stock of the Corporation, subject to all necessary approvals, 
including those of the independent directors.  The conversion has been 
reflected in the balance sheet as at September 30, 1997, and the preferred 
stock has been reserved for issuance.

NOTE 5.  COMMITMENTS AND CONTINGENCIES

As discussed in further detail in "Item 3. Legal Proceedings" contained in the 
Corporation's Transition Report on Form 10-K for the 11 months ended December 
31, 1996, the Corporation, its former parent company, certain of its officers 
and directors, and the underwriters of its initial public offering have been 
named as defendants in a purported class action lawsuit involving the purchase 
by all persons and entities of the Corporation's common stock from February 9,
1995 through May 23, 1995.  The action alleges that the defendants violated 
certain federal securities laws.

The Corporation believes that the allegations are without merit or that there 
are meritorious defenses to the allegations, and intends to defend the action 
vigorously.  If, however, the plaintiff is successful in its claims, a 
judgment rendered against the Corporation and the other defendants may have a 
material adverse effect on the business and operations of the Corporation.

NOTE 6.  DISCONTINUED OPERATIONS

Effective April 30, 1997, the Corporation sold substantially all of the assets
of its environmental remediation services operation for approximately $0.2 
million.






















                                       -8-


<PAGE>  9

                       PART I.   FINANCIAL INFORMATION
                                 ---------------------

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

The following discussion and analysis of the results of operations and the 
financial condition of ICHOR Corporation (the "Corporation") for the three 
months and the nine months ended September 30, 1997, respectively, should be 
read in conjunction with the consolidated financial statements and related 
notes included elsewhere herein.

The Corporation is focusing on the development of its waste oil recycling 
business and related operations, which consist primarily of a waste oil 
recycling facility located in McCook, Illinois that converts waste oil into 
distillate and other recycled petroleum products and processes and disposes of 
oily waste waters (the "McCook Facility").  This facility was brought on-line 
in the second quarter of 1997.  The Company also plans to expand through the 
acquisition of related businesses.

Effective April 30, 1997, the Corporation sold substantially all of the assets 
of its environmental remediation services operation for approximately $0.2 
million.  This operation has been classified separately within the 
Corporation's financial statements as "discontinued operations" and is 
excluded from the amounts of revenues and expenses of the Corporation's 
continuing operations.  The Corporation's comparative financial statements for 
the periods ended September 30, 1996 have been restated to conform to this 
method of presentation.

Results of Operations - Nine Months Ended September 30, 1997
------------------------------------------------------------

Revenues for the nine months ended September 30, 1997 were $2.0 million, 
compared to nil for the nine months ended September 30, 1996.  Cost of sales 
for the period ended September 30, 1997 were $2.2 million, compared to nil for
the period ended September 30, 1996.

Selling, general and administrative expenses for the current period of 1997 
decreased to $0.5 million from $0.8 million in the comparative period of 1996,
principally due to the downsizing of the Corporation's head office.

Interest expense was $0.6 million in the period ended September 30, 1997,
compared to $0.3 million in the period ended September 30, 1996, primarily as 
a result of an increase in long-term debt and in the amounts advanced under 
the Sirrom Agreements (as herein defined) in the current period of 1997.

The Corporation reported a loss from continuing operations of $1.3 million in 
the nine months ended September 30, 1997, compared to $1.1 million for the 
nine months ended September 30, 1996, primarily as a result of the increase in 
interest expense and the start-up of the McCook Facility, which was partially 
offset by the decrease in selling, general and administrative expenses in the 
current period of 1997.

The Corporation had an operating loss from discontinued operations of $0.3 
million in the current period of 1997, compared to $0.5 million in the 
comparative period of 1996.  The Corporation had a

                                       -9-


<PAGE>  10
gain on the disposal of its environmental remediation services assets of 
$59,000 in the nine months ended September 30, 1997 and a loss on the disposal 
of its thermal treatment facility of $0.8 million for the period ended 
September 30, 1996.

The Corporation's net loss for the nine months ended September 30, 1997 was 
$1.5 million or $0.31 per share, compared to $2.4 million or $0.98 per share 
for the period ended September 30, 1996.

Results of Operations - Three Months Ended September 30, 1997
-------------------------------------------------------------

Revenues for the three months ended September 30, 1997 were $1.1 million, 
compared to nil for the three months ended September 30, 1996.  Cost of sales 
for the period ended September 30, 1997 was $1.2 million, compared to nil for 
the period ended September 30, 1996.

Selling, general and administrative expenses for the current period of 1997 
decreased to $0.2 million from $0.3 million in the comparative period of 1996, 
principally due to the downsizing of the Corporation's head office.

Interest expense was $0.2 million in the three months ended September 30, 
1997, compared to $0.1 million in the three months ended September 30, 1996, 
primarily as a result of an increase in long-term debt and in the amounts 
advanced under the Sirrom Agreements in the current period of 1997.

The Corporation reported a loss from continuing operations of $0.5 million in 
the three months ended September 30, 1997, compared to $0.4 million in the 
quarter ended September 30, 1996.  The decrease in selling, general and 
administrative expenses in the current period of 1997 was offset by the 
increase in interest expense and the start-up of the McCook Facility.

The Corporation had an operating loss from discontinued operations of $86,000 
in the quarter ended September 30, 1997, compared to $68,000 in the 
comparative period of 1996.

The Corporation's net loss for the three months ended September 30, 1997 was 
$0.6 million or $0.11 per share, compared to $0.5 million or $0.18 per share 
for the period ended September 30, 1996.

Liquidity and Capital Resources
-------------------------------

At September 30, 1997, the Corporation's cash and cash equivalents totaled 
$0.1 million, a net decrease of $0.5 million from $0.6 million at December 31,
1996.  The Corporation maintains two lines of credit in the amount of $0.8 
million each to fund the working capital requirements of the McCook Facility,
which was brought on-line in the second quarter of 1997.  The Corporation had 
approximately $0.1 million unutilized under these lines of credit at September 
30, 1997.  Both lines of credit are with affiliates.

At September 30, 1997, under two agreements with Sirrom Environmental Funding, 
LLC (the "Sirrom Agreements"), the Corporation had funded the amounts billed 
and outstanding under certain Florida State rehabilitation programs in the 
amount of $4.0 million, at rates of prime plus 2% and 3%, respectively.  The 
Corporation holds $0.8 million in escrow to cover potential disallowances and

                                       -10-


<PAGE>  11
future interest costs relating to the Sirrom Agreements.  Due to an 
accelerated payment program, the amounts billed and outstanding are expected to 
be paid in the fourth quarter of 1997 and be discounted at the rate of 3.5% 
effective January 1, 1997 with the present value determined from the actual 
settlement date of a reimbursement application rather than the original 
settlement date. The Corporation will not be able to determine the impact of 
discounting and any disallowances on its operating results and financial 
condition until payment amounts and dates have been established.  The 
Corporation may be required to record an adjustment to reflect any negative 
impact.

Net cash used in continuing operating activities was $0.4 million for the 
period ended September 30, 1997, compared to net cash provided of $0.8 million 
for the period ended September 30, 1996.  Operating activities used cash 
primarily as a result of the net loss for the period and an increase in 
accounts receivable. In the nine months ended September 30, 1997, an increase 
in accounts receivable used cash of $0.3 million, compared to a decrease in 
accounts receivable providing cash of $1.1 million in the nine months ended 
September 30, 1996.  A release of cash held in escrow provided $0.5 million in 
the current period, compared to $0.1 million in the period ended September 30, 
1996.

Investing activities of continuing operations used cash of $0.3 million in the 
period ended September 30, 1997, and $0.1 million in the period ended 
September 30, 1996, as a result of the purchase of property and equipment.

Financing activities of continuing operations provided cash of $0.3 million in 
the period ended September 30, 1997, compared to $20,000 in the period ended 
September 30, 1996.  A net increase in debt in the nine months ended September 
30, 1997 provided cash of $0.3 million, compared to $20,000 in the nine months 
ended September 30, 1996.  On September 30, 1997, the Corporation's parent 
company agreed to convert part of its loan due from the Corporation into non-
redeemable shares of preferred stock of the Corporation, subject to all 
necessary approvals.  The Corporation has reserved the preferred stock for 
issuance.

The Corporation believes that the cash generated from operations and its lines 
of credit should enable the Corporation to meet its ongoing liquidity 
requirements.  The Corporation is closely monitoring its cash requirements and 
continues to implement cost reductions and conserve cash as necessary.














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<PAGE>  12
                       PART II.   OTHER INFORMATION
                                  -----------------

ITEM 1.  LEGAL PROCEEDINGS

Reference is made to the Corporation's transition report on Form 10-K for the 
11 months ended December 31, 1996 for information concerning certain legal 
proceedings.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits


Exhibit
Number                           Description
-------                          -----------

  27           Article 5 - Financial Data Schedule for the 3rd Quarter 1997
               Form 10-Q.

(b)  Reports on Form 8-K

None






























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<PAGE>  13




                                     SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned, thereunto duly authorized.



Dated:  November 13, 1997              ICHOR CORPORATION


                                       By:   /s/ Michael J. Smith
                                           ----------------------------------
                                           Michael J. Smith, President, Chief
                                           Financial Officer and Treasurer



































                                       -13-

<PAGE>  14
                                     EXHIBIT INDEX

Exhibit
Number                       Description
-------                      -----------

 27            Article 5 - Financial Data Schedule for the 3rd Quarter 1997
               Form 10-Q.