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I would do a rebuild for sure. Plus if you do that you get to keep the original block and even heads from the car if you so choose to do so. I would ask around for the best shop around your area and go with that.
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.