Is this SR20 block savable?

[Aku777]

I picked up this block not too long ago and wanted to know if it was savable? As far as I know, the previous owner blew a head gasket and melted piston #1. Here's the damage done to the sleeve.





As you can see, the cylinder wall itself is fine and the way the piston travels should be completely fine. But I'm worried about the top/edge of the sleeve & the head gasket seal. My plan was to bore the cylinder out 0.5mm, and deck the block about 0.2mm along with the head which should leave me needing a 1.5mm head gasket. I will be calling a few local machine shops tomorrow (when they open) so I can ask about this.

So, I have a few questions.

1: Is this block savable, and am I completely fine just decking & boring the block? Or would I need to pay over a thousand dollars to completely re-sleeve it? Do I need an entirely new block? If there are other options, please let me know what they are & what the pricing would be.

2: Would the head gasket seal perfectly at all, even after decking? My main concern is that when the piston is traveling upwards, it'd apply compression on the bottom side of the head gasket through the pitting on the sleeve and then the compression would leak through.

Thank you in advance for any input! I really need help on this.

(looking from the preview: sorry, don't know how to resize images at all)