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While reassembling the head, I found this: Notice iron lost around guide between 1 o'clock and 6 o'clock
Does this mean the head casting has gone to be one with the great short block in the sky? Or is it nothing? The valve and guide measure near new: of the 12 valves, 11 showed about 0.001" wear; the remaining valve only had about 0.002". I don't know if this was the most worn, but all are will within limits. Also, valves and guides pass the thumb-sucking test.
Not fatal. That head has had guides put in it at some point and the parent cast of the head has come away from the guide at the top. If you are using umbrella style seals you are good to go as is. If you are using positive style valve sem seals and seal still seals on the base of the guide you are good to go as is, ( what is there should be fine). If the valve stem seal won't seal on the guide base (unlikely) then you may have to look at having that guide fully removed and a full-length replacement installed, Either way, the head is not scrap and can be fixed or used as is depending on the valve guide seals.