Don't you dare scrap that block! Any good machine shop can sleeve the cylinder, and make it as good as new. As long as there's at least 1/2" of undamaged cylinder at the top and bottom, I've saved blocks with holes knocked in the cylinder walls. If there's no perforation of the cylinder wall, just gouges, use a 3/32" thick sleeve. If there's a hole, then use the thickwall sleeve, with a 1/8" wall.
On really rare blocks, I'll sleeve all the cylinders, and bring them back to standard bore size. I also do that on race engines, where there's a tendency to crack cylinder walls when large overbores are used.
Jerry
