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I cannot say for sure, but that sensor right there goes directly into the pan area to allow oil to pour on it to read the oil temp. Some bolts DO go thru.
WHy go there?
I ran one ground cable to an exhaust manifold bolt, BUT I DID get a longer bolt so I did not risk stripping threads out of the aluminum head.....A clean connection is more important than the location. The less cable used the better.
I also have a ground cable to the frame. Couple bolts in the lower end of the angled brace by the booster that run to the frame.; pull one off the frame and stick the cable end there.
I used a brake booster stud as a temp home for one of the cables for a while. Use anything thats a common section of a large portion of the car.
As a safeguard, I also ran a cable from block to frame... I have no ground issues anymore.
its only a ground...who cares? it don't even need to be insulated. You can use a bare piece of strap or whatever....it dont get THAT hot....if it does get RED hot, somethings seriously wrong.
Mines been mounted like that for 3 yrs at least.
You're in the right area. Here's a picture of my '86 (pardon the burned wires :-):
Some of the text didn't come through for some reason. This connection is very important because all of the starter current goes through it (several hundred amps). It needs to be very secure.