HI guys.
I decided to consolidate my issue into this thread to make it easier. The reason Im posting it in this section of the forum is because I need advice as to what to purchase and if its even repairable.

As some are aware I was about to sell my 87 Savage. I had 4 buyers at 4800 AUD. I paid 1500 for the bike and spent 1000 on transport and parts, so I looked at a tidy 2300aud profit.
Unfortunately, when I was giving it one last check I noticed it had gotten quite noisy. There was also steel in the oil and filter along with some aluminium
I am not the type of person to sell a bike with issues unless it's sold for parts so I opened up the top end, optimistic that Id still make a profit after the repairs. If I find more serious damage, I will get an upgraded piston and cam.

Here is a link to the sound of the engine. Even after adjusting the valves to 0.10mm it was tapping loud.

https://www.youtube.com/shorts/SbAMFCubTto

Removing the valve cover I immediately noticed a massive issue and the primary source of the ferrous metal in the oil. The intake valve rocker looked like it had been hit with an angle grinder. The exhaust rocker, while not near as bad was pitted.

The cam lobes seem ok. But the journals on the clutch side are trashed. Im guessing this is the source of the aluminium looking flakes in the filter and oil. Here is the image of the head cover journal on the sprocket.

I next went to remove the head and was not really pleased to find that the head nut that secures the head via the exhaust port stud was completely round. I had to cut the stud to get it off so add a new stud to the parts list.

The exhaust valves are jet black. The intake valves look a bit toasty. But not too bad. They may clean up fine but if it's all out they may as well get replaced too.

The cylinder has no honing marks left. Only slight up and marks from the rings but nothing I can feel or catch a nail on.

More of the cam

So from here what is my best course of action? Are the journals repairable at all? Seems like there's no luck on the forums with that.  Should I just source a new head?  Or just smooth the bearing and install a new cam and hope for the best ? The cam will be replaced as I am not comfortable using it so Ill see if the postage isn't out of this world to get one from Lancer to here in Australia.

The rest of the valve train is easily replaced. The only roadblocks will be those journals and that bloody stud I had to cut. If anyone knows anyone selling a head and cover in Australia or would sell cheap as postage is huge, please do let me know.

I really appreciate the help guys.

It's my understanding that the head and cover are assembled, then line bored for the cam. That would make them actually a matched pair, Best kept together.
Others have replaced a head and I don't know of a failure because of a misalignment with the cam.
IDK what having the bearing surfaces repaired would cost, and just a head won't help with the bottom side,
Too bad they didn't use bearings in there.

Corrected cover for cylinder  -v1

I'd check the clearance on the journals 1st with those compressible strips.
Then polish them and check again.

https://www.plastigaugeusa.com/