all that grey stuff im pretty sure is head sealer. The part you are looking at is the front of the block above the camshaft bore bearing. It looks like there is a chunk missing
Just to clarify, it is inside the block, not anywhere where the timing chain is. Sorry if my wording is misleading. I wish I could circle the area where the issue is
Well thats a relief. So it looks like this motor may be rebuildable after all. Just gotta check that crack that is at the top of the deck between #5 and 7, pray to god that the crack doesnt go into the block.