Pieces of steel in cylinder??

Go get a 5.,9 magnum that runs and you way ahead of the game as far as cost goes.

Boring the thing is going to cost 400 for the piston and ring kit, gaskets etc. The machining is going to run you 500+. At that point, are you done? I doubt it. Get something cheap that runs, then take the money you didn't spend and build a motor from the ground up properly. Heck, you might get lucky and find a running 318. Change nothing and keep going.