cylinder scarring

So i got the big ugly gouge in my cylinder wall. Cylinder 3. I micd the top of the cylinder and got an average of 3.435 (wasn't perfectly clean) so that would put my engine at .040 over if my math its right. Now i don't have the tools to measure how deep it is and i can't figure out the picture adding part because i don't have a computer just my phone, but i can see that it's about an eighth in wide. If I bored it out would i be making the walls too thin? Should i sleeve just that one cylinder? Everyone at work (precision tune) says it's time got a v8 but I'm not sure I'm ready to give up on the old slant. We've been through too much.