Is this engine recoverable?

The OP asked if it's recoverable. The answer is "probably," but the only way to tell for sure is to rip it apart and assess how much machine work it'd take to bring it back to usable condition. I get (and understand) the value in saving an engine that would otherwise be scrapped, but you have to ask yourself - how much is your time worth? Where I'm at, you can pretty much get a running slant six for next to nothing. I'd give that one to the folks interested, and willing to spend the money on the machine work to bring it back from the dead, and spend a few bucks on a more usable core.