water in oil long winded

http://towd.smugmug.com/Other/2015/i...atLogjam-M.jpg
Long Story Short
5 years ago a few friends salvaged an `aluminum jet boat that got swept down the river in a big flood we had. Canadian Coast Guard is the Receiver of Wrecks so we contacted them to find out about salvage laws. We then found out who owned the boat and offered to salvage it for them. “Go ahead” they said.
It took 200 man hours for 6 of us cutting a path to haul it out. Boats with an engine are not permitted to operate in the Bella Coola River so taking a “dead” boat down river was out of the question and didn’t sound like fun with all the new log jams anyway.
We called the owner and the CCG to tell them that the boat is safe in my yard; I sent both parties an album of photographs we took during the salvage. CCG said they would now take over the vessel and deal with the owner.
http://towd.smugmug.com/Other/2015/i...ddy-engine.jpg
The owner said,”Not to do any work on the boat”. We let it sit over winter.
The Receiver of Wrecks then gave me possession of the vessel, 5 months after we salvaged it. Immediately we tore the engine out and cleaned and rebuilt it. Just a few new parts need, one exhaust valve, head gaskets and new head bolts.
In the photos above you can see lots of silt and mud and for sure water from the flood. The Boat was on a trailer with a chain locking the towing eye on the bow to the trailer frame. The trailer is in a log jam somewhere up river. It must have been a wild ride during that flood to where it jammed up. The roof mounted lights and antennas were wiped off.

http://towd.smugmug.com/Other/2015/i...t-engine-M.jpg
Four years pass the Jet Boat project slowed to a halt with everyday life getting in the way.
Until this spring.
The jet drive cannot be started out of the water and a garden hose doesn’t have enough water, so we unbolted the engine from the jet drive. Planning on starting the engine and doing some checks and changing the oil. Before we install the fuel tanks on each side of the engine.
I hooked up a garden hose to the hose to the heat exchanger and poured fresh water into the header tank that fills the block, the block water disappeared and showed up in the oil pan.
New in 2004 8.1L (BB GMC) Kodiak Marine inboard gas engine has 14 hours on the Hobbs meter. The engine bolts up to Hamilton 212 jet drive.
We did not run it since the rebuild, it turns over smoothly with ¾” drive ratchet and socket on crank bolt –plugs out– no water in cylinders. I did not want to spin it with the starter till we figure the leak.
I think we will haul the engine out and put it back in the shop on an engine stand. Oil Pan off and see if I can hear the leak using a “radiator pressure tester gauge” and pump it up and hope see any leaks
Isn’t there some test liquid that will show up where the cracks are?
It might have froze with flood water in it we salvaged it in December. But I'm hoping for a missing "O-ring"
Any thoughts appreciated
Cheers
Hank

My experience with those engines point to 2 things that leak water into the engine. The exhaust manifolds and the intake. Both not cheap fixs Good Luck

Thanks
I found out that the starboard exhaust goose-neck is leaking when I pressure tested the header tank--- it should be separate sea water and antifreeze
Could the water get into the oil from the exhaust?
Looks like a plastic intake manifold.
thanks again
Hank

It has a closed cooling system with a raw water heat exchanger, right? If so then your closed system is pretty much the same as on a car, water pump circulating your antifreeze/water mix through the engine and the inner core of the heat exchanger, and a second loop that takes raw water (the water the boat floats in) and pumps that through the heat exchanger and out, as I understand it. Here's a basic description - Marine Engine Cooling Systems - BoatSafe.com , and not trying to preach to the choir here, just trying to understand what you've got.

Seems to me that if you're getting coolant in your oil pan you've got a problem with the block unless I misunderstand your system.

Roger on that , Roger
you have the correct idea on that cooling system

It must be a big crack as the water disappears into the oil pan pretty quick
Hank

With a river runner up in that neck of the woods perhaps they were running it with a reduced level of anti-freeze in the coolant, just enough for water pump lube and corrosion reduction, but not enough to withstand the harsh winter temps that you get? Just guessing here, and it's really a moot point. I'd say that you'll have to tear it down to know.

I not know for sure if they used the jet boat on this river but it is illegal to operate a boat with a engine on the Bella Coola River.

Tear down is in order
thanks for the reply
cheers
Hank