I don't know that motor, but I will say, once a head gasket is torqued, it is trash. You cannot reuse a head gasket.
If its leaking from any part of the head gasket, the whole head seal is suspect. I would pull it and have a machine shop deck the heads. Sanding it yourself, you don't truly know how much metal you took off. If you took off too much, you could have a valve interference problem at high rpm.
A new head gasket and having a shop properly measure and prepare the head is a lot cheaper than a blown motor.
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