FWIW, my 98 LS1 that had 172,000 on it looked almost identical when I tore it down. After a simple rebuild, cylinder hone and a crank polish, new bearings and rings, it's working great. Mine even had the 806 perimeter bolt heads like those, which ended up in the aluminum scrap bin as they aren't worth anything. Found a set of cheap low mileage 241's on craigslist to replace them. Not the best either, but the price was right and they looked new.
A Compcams trunnion upgrade will take care of the rockers too. Good luck, cool project!
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