Could be trash that came from the oil galleries. You said this looked like it was recently rebuilt. Had this happen to me when I did not clean the block properly after machining.
Mine looked worse than this and had to have my crank turned .010 .010 to clean up the damage.
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1967 Firebird project in the works
400, 670 heads, 2802 cam, Hooker comp, Crosswind intake, Quadrajet, 700r4, 3.42 Posi.
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