Pete:This is the area that many Y blocks blew the head gasket between cylinders. That's heat cracks. I doubt if they would progress any farther, they are actually in the deck surface, not the cylinder walls. They indicate how thick the walls are, the cracks stopped there. Looks like the deck has been cut sometime after the gasket blew. I would probably use it if it were mine. It can't leak water, the gasket will seal it.
John