A block good to rebuild?

We are working on our '48 A and the valve was stuck and we pulled it apart and then I figured we should go ahead and rebuild it that way it should be good for a long time. I got the tractor not running and the motor was stuck due to the valve. When we pulled the block the bottom 1 3/8" chip out of the cylinder wall that sticks out the bottom. Is it going to be too much broken off or is it still good?
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The oil rings go clear to the bottom. You can have that block sleeved but make sure whoever does it they run the sleeve clear to the bottom !
 
I have a '41 and one that looks like the same vintage without the sn# are those blocks the same even though the petcocks are on the side not the bottom? Would I be better to use one of those blocks? Thanks
 
Another option with similar expense to sleeving is short modern-style pistons & longer rods. You get more compression & hp in the process, depending on what length rods you get. Sleeving is expensive
 

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