I got this motor free with the 240z I bought. After inspection, it looks like it sat in a mud hole for a few years...

Is this a lost cause? Should I turn it into scrap?

It can't be too bad, no broken head bolts. 

Seems like I've broken at least one on every junkyard motor I've bought. I'd keep it for now if you have the room. Scrap it when you get your other motor in and running.

I agree with siteunseen, it doesn't look too bad. It most likely can be rebuilt to like-new condition.  What year is your 240Z and what engine is in the car now? 

Could be a good core to have on hand.

 Put about a quarter cup of your favorite penetrant in each cylinder and a diaper (nappy) under the block before you store it. Those pistons may need to come out later.

Are you sure it's an L24?  How does the crankshaft look?

Thanks for the replies.

Actually all the head bolts and cam sprocket bolt were loose when I was taking the head off.

L24 is punched in the side of the block. I have an L28 in the 72' 240z right now.

I'll spray the cylinders down. I'm moving soon, which is why I took the head off (lighter to move around separately).

I haven't disassembled the lower block yet.

1 hour ago, Awk34 said:

I haven't disassembled the lower block yet.

Probably doesn't matter much.  You have an L28 in your car because that's the easy way to get more power.  The L24 will probably be worth something to somebody some day.  The question is whether or not you want to be the keeper of the block.

I'd give it away on Craigslist.  Some Z head out there will probably take it and make something good from it.  I sold my L28 engine for cheap after I replaced it with a better one.  I knew I'd never do anything with it.

Take the front cover and thermostat housing and other odds and ends that you can use on your L28 and give the rest away.

It’s fun to take something ugly and make it beautiful. When you pull the pan, everything inside will look great. Soak the top cylinders in penetrant for days, take the crank out and drive the pistons out to the downside. A machine shop can bore the cylinders and make it look like new. I think your biggest problem will be pitting of the outside crankshaft journals. That being said, Zed Head is probably right. Give it away on Craiglist and let someone else do it?.

On 6/15/2020 at 4:54 PM, Awk34 said:

I got this motor free with the 240z I bought. After inspection, it looks like it sat in a mud hole for a few years...

Is this a lost cause? Should I turn it into scrap?

Question -

Does the data plate on your car match the serial number of the block?
If so, you may want to hang onto the block. It may add value to the next owner.

If the numbers are not matching, then it looks well suited for a submarine anchor. Already has the patina to match.

On 6/15/2020 at 7:43 PM, Awk34 said:

L24 is punched in the side of the block. I have an L28 in the 72' 240z right now.

I'll spray the cylinders down. I'm moving soon, which is why I took the head off (lighter to move around separately).

Mount it on a wheeled dolly to make the moving easier. Then you can reattach the head so you don't misplace it (You realize that this is the first baby steps to hoarding)

Other observations and questions -
The dipstick is missing - I assume you had already removed it.
Did any oil register on it? Did it look like oil or maybe swirled like chocolate milk?