Charlie:Did the engine happen to get bored .060 oversize after the sleeve was installed. Your mention of pitting that didn't come out of the original bore at .060 made me wonder. If the sleeve is a .093 wall sleeve, and you took .030 of that out when you bored it .060, then you only had .060 left of the sleeve wall. At that thickness, it is possible a chunk came out as Ted mentioned. If this is what happened, then have an 1/8" wall sleeve installed and it will be fine.
John