Camshaft failure

[Alan Roehrich]

You'll be able to see a failed cam by pulling the intake, you'll see the dead lobes through the big drain back holes, but the metallic oil and the excessive lash have already verified the problem.

Yes, it will be everywhere oil goes in the engine. In the bearings, behind the rear cam bearing, in the oil pump, on the pistons, in the pushrods, on the rockers, I've even seen the iron dust in valve guides. Be prepared for a full rebuild, with rings and bearings. It is the right way to do it.