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You may want to pull the valve cover first and inspect the area where the pushrods pass through. It is a common fail point when a hole will develop and allow oil to drop directly into the exhaust manifold passage of the head, bypassing the cylinder, which would explain why you don't have significant smoke.. There would also be evidence of the hole by examining the smoke coming from the oil fill hole while running. It is often confused with piston ring wear but piston ring wear doesn't allow for the passage of oil to the exhaust. My suggestion is to examine the yoke between the passages and if nothing is found, remove the head and have it checked at a. machine shop if nothing leaps out at you. Oil dropping onto the dry side of a mixing elbow will produce white smoke at the exhaust temperature rises but will pool oil in the exhaust when it is cooler, like after initial start up and after shut down. It doesn't hurt to look.
 

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If the failure is in that passage, no machine shop will even bother to attempt to repair it because the cause of the failure renders the surrounding material too poor to weld to and the cost of attempting puts you in the replacement head range. Replacement is the simplest and most reasonable step, provided this is the fail point. remember, not being able to see the engine means I really don't know what your problem is. I'm just giving you things to look at and to think about when you are "getting into it". I've seen people attempt to use liquid steel to patch the holes but always to just sell the boat and rid themselves if the problem. The patches don't last, obviously.
 

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There is a guy in Oak Bay selling a 2GM with a busted crank. You might be able to get the whole thing for 1/3rd the cost of a new head, and a back up gear. If it were on the mainland, I'd go buy it just for the gear and head.
 
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