So sheer blind optimism didn't work. As I sadly suspected the bottom end is toast, including my new 6-piece camshaft (a custom solid job from the now-closed Clive Cams), shortened conrod, etc. A rod bolt broke and carnage ensued. Obviously. The more i stripped it, the more I found.
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The heads seem relatively okay, apart from where the piston smacked the valves, so need a bit chamber work and two new valves. I then pulled the engine I had sitting in the next project car. It's a standard bore VR 304 I bought for $500 before covid. After stripping it, it seems good, so it's off to the machinist for sonic testing, cleaning, etc to make sure it's good (the old one needed 8 new sleeves and a heap of other work to resurrect - will just keep it for now).
All going well I plan to go "back" to a 355, this time with four bolt mains, Crow hydraulic roller cam and a lower redline (ha ha), and use all the same bolt ons that survived, heads/Pro Paw intake mani, etc. Any recommendations on gear is welcome of course (I am sorted for engine builder and tuner), but at this stage going forged steel crank (can't decide which brand), callies rods, JP pistons and new arp stuff throughout. I am happy to step back the horsepower from the last engine, and reduce comp as well (looking for 10.8 or so, last one was in the high 11s) and have a reliable, strong street engine that holds together for the odd drag and drive event (don't care about ETs, just the fun of doing it).
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I am kinda excited about the new engine build, it was the one part of the car that wasn't new, not so excited by the budget... Hopefully will have it all sorted by the end of the year, but not rushing it. It seems a good time to upgrade the Haltech to a R3, but the budget says no. I will maybe sell a child if I can't ignore that idea.