Hi JIM how are you, that looks a mess and skimming as suggested would be the way to go.

Its amazing what some home mechanics do, a friend of mine bought a Triumph 500 one factor that decided him to buy was no oil leaks, a good while later he had to take it down to replace main bearings, he could not get the crankcases to part on inspection he found that
they had been Araldited together as previously they had been butchered with a screwdriver as someone else had prised them apart, it cost him a new pair of cases.

I hope you solve your problem it would be shame not to use those barrels.

DUX.