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Paul,
From your report it seems clear that a small hole has opened up in one of your water jackets. The question is which one. The easiest item to check is the manifold. All you have to do is to remove the hoses from each end and blow in one end while holding your finger over the other. If you can blow through the manifold, that's your smoking gun.
If your manifold is solid, you can use the attachment to check the block and head.
Don
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