If that were the case I would expect the oil in the pan to be milky. A leak into the cylinders I would think is what would cause the buildup on the valve cover.

 

the cylinder head drainage is one route the coolant evaps to. So you see it on the valve covers.....if you drain the oil from pan, oil floats on coolant, so the first drops out are coolant, not oil. You won't see it on dipstick...

have you drained the pan?

 

I have not. The oil level hasn’t changed though. I appreciate the back and forth! In a way I had hoped it was in the cylinders as that might also explain the knocking noise.

 

drain the pan and save first 250mls or so and put it in a clear glass and let sit for a bit...see if you have oil/coolant differential ...

 

Will do. Going to get someone to turn it over with the valve covers off just to visual check rocker movement better and make sure I’m getting good oil flow to the top end. I’ll bore scope tonight or tomorrow and drain the oil.

 

Perhaps an issue with the timing chain cover gasket? That would allow coolant into the oil.

So would a torn lower intake valley pan gasket.

 

Valve action looks good and no noises turning over on the starter. Could see oil flowing good into one of the lifters.

 

Also figured out what the goo is on the valve cover. I packed the oil pump full of petroleum jelly to help it prime. Taste great too 😆

 

Bore scoped all the cylinders and everything looked good. No signs of steam cleaning no standing water. Was able to get in to look at the cam and don’t see any issues there. I’m not sure how fast the lifters should bleed down but at max travel the lifters seem to bleed down in 30 seconds or so. Guess I’ll slap it back together and run it till something gives.

 

Put a pressure tester on the cooling system, see if it holds overnight.