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Well, really, nothing increases hp (with the exception of raw cubic inches) like a healthy compression increase. I have seen almost 1:1 increases with respect to compression vs. horsepower gain, so I don't think that up to a 20% increase is unreasonable in this case, especially when accompanied by other well-considered mods such as a cam change, well-tuned carburetion, and ignition curve improvements. The two biggies-cam and compression- will provide the biggest gains while other mods would more or less be in response to cam and compression improvements, such as opening up the exhaust, etc.
If you do all that-head swap, more aggressive cam, better intake, headers with bigger(say, 2 1/2") exhaust, I would think you could easily see a legitimate 75 hp increase over stock, with even more available if you take the extra time to tune the fuel and ignition curves an additional 10% would pretty easily be within reach...
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.