2 Stroke Help! Bottom End Rebuild

2009 ktm sx 85.
This is my first complete rebuild from the bottom end up so I will likely have many questions down the road but I'd like to keep them all in one thread. Im not a mechanic so Im not great on noticing certain defects when it comes to engines. The piston had some bad scarring and the head as well so I've got the cases split and cleaned. There were shavings and a couple sizeable chunks of metal inside before cleaning them out.
My first question for now is in the attached picture, at the base of the cylinder/top of my case, is this a gouge of some sort caused by the engine problems or the result of a bad mold when coming from the production line? And if so, can it be used still or is this an issue?

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Definitely a casting anomalie. You may see hair line crack appearances as well, but inspect them closely and most will be superficial.
 
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