The cam lobes on solid lifters engines like the K301 are ground at a very slight angle so the lifters or cam followers rotate as they rub against the camshaft. That's so the wear between the camshaft and lifter is distributed to the whole surface of the lifter.
I suspect You have a stuck piston ring which is causing the oil consumption/smoking. Pretty common problem on engines that have sat for several years.
I'd clean away as much of the carbon deposits as You can, replace the head gasket, maybe even try to get some sort of solvent down between the piston & cyl. bore to dissolve whatever is sticking the ring. Run the engine for a short time, change the oil and run Your favorite "Overhaul-in-a-can" in the gas and maybe the oil also. A brand many people have used is "Seafoam" and there are many others.
I suspect You have a stuck piston ring which is causing the oil consumption/smoking. Pretty common problem on engines that have sat for several years.
I'd clean away as much of the carbon deposits as You can, replace the head gasket, maybe even try to get some sort of solvent down between the piston & cyl. bore to dissolve whatever is sticking the ring. Run the engine for a short time, change the oil and run Your favorite "Overhaul-in-a-can" in the gas and maybe the oil also. A brand many people have used is "Seafoam" and there are many others.