How bad is this damage to the head?
 

I have acquired a 1.8 auto(I know less compression) engine that I was planning on swapping into my car. The engine was said to have around 60k on it because the car it came out of was wreck at that mileage. It has been sitting for a good number of years so I tore it down to remove all the sludge/old gaskets.

When I took the cams out I noticed this small chunk taken out of the cam guide, I looked on the cam itself and it has a small visible mark around it, but I can't feel it with my fingernail.

Cam Damage - Imgur

I believe only the 1.6 auto has lower compression. Someone correct me if I am wrong, but manual and auto BPs are the same.

I think the auto cams are less aggressive.

Well does anyone know if I should bother with this engine? Or is the damage to bad to have anything reliable come from it?

If there is no raised edge on the journal, it will be fine. If there is a raised edge, it must be stoned down so as to not cause problems.