If the head passed pressure test I'd put a seat in it and run it.
Those are pretty beefy Pistons. I'd drop that piston out and if it didn't smash the ring land down on the ring, I'd buff the piston up a bit and run it too.
You damn sure need to figure out why that valve broke. Weak springs. Maybe just a bad valve. But you need to be sure.
You need to find out where the water is coming from--the seat in the head or a split cylinder wall? Also looks like heavy 3/8" valve stems--Why? Was this engine built in the 80's? Pics of the other side (good) valvetrain could help. Looks to me like valve float from too much RPM for the spring package--intake valve tagged the piston bending it slightly--then the valve head just bends back and forth everytime it slams down on the seat until it snaps off. J.Rob
The motor was built in the 80's, yes. The pic's from my previous post show the water is coming from where the valve has snapped, tumbled upside down and pushed back up by the piston through the surface the head behind the seat.