My first guess would be the rod bearing spun. It could be wrist pin but I don't think so. It could also be broken spring in the heads. First thing is to pull the oil drain and see what it looks like. If it looks like you are mining for gold or some really grey looking sludge you're done.
The block may or may not be salvagable. When they spin bearings they more often then not usually wipe out the crank thrust journals. We can fix them but it's cheaper for me to sell you a core that's in good shape.
I actually have a number of engines that we are prepping for sale and can either be bought outright or done on an exchange. Almost done with prepping a 1989 engine taken in on trade (doing a 1527 stroker engine for him). We are regasketing the entire engine (not counting head gaskets), installing a HD oiling kit, Putting the DD Clutch modification in, and setting the valves. All i've got left is the valves and new gaskets up there. Then it's ready for paint (if the customer wants it painted). It made 127rwhp on the last dyno (with stage seven and hindle header). This same engine was rebuilt a couple of years ago so it's fresher anyway. Trans has the updated shift drum and segment and other parts replaced.
We can also build you about anything you'd want.
Sean