It really depends on the location of the chip on whether it will work out or if it will just settle. From what I have heard, his is located on the top-half of his knee away from the joint. I have seen various chips and bone fragments work their way out naturally...mostly resulting in an abscess (which is what the track vet said).
With given a proper amount of time to heal, he should be able to make a full-sound recovery. He should be able to go light jumping...I personally would have him cleared to do so by a vet and also wouldn't be jumping him very high or very often. I feel he'd make a nice riding horse....just an "all-arounder" to plop on; something a bit more than just a trail horse, but I wouldn't push him as far as making him a A-circuit hunter or 4ft+ show jumper.
Again, this is what I have been told. I do not personally know the horse, I'm the middle to the "middle-man," but from experience, having a chip in the area that they say it is in, is lucky. I have worked with a few horses that had chips right in the joint of their knees or hocks and although good horses, they just weren't cut of for the "big stuff" anymore. Buddy's chip (not being on/in the joint) shouldn't affect him...it's just putting the time in him to heal and then slowly bring him into work/re-train...
