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Yes, that is oil on the head bolt. My though was exhaust too, but there is nothing on the manifold side. It's clean except for the paint coming off and rust. The exhaust flange seems too far aft of the splatter on the block, but there could be a pin sized hole in the manifold itself.
I think my step will be to get compression numbers then run the engine and check for any leaks in the exhaust manifold or head bolts.
There is certainly corrosion inside the manifold as evident from the water pump and coolant line on top the exhaust manifold.
Thanks.
Last edited by Ujin; 03-09-2019 at 02:06 PM.
Reason: Additional information.
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