I too would run it. Like Alvy and Lew said, seen and ran worse.
Key is, to make sure the gouges are smooth. Sharp places cause hot spots. The thin metal sharp edges can heat to melting point. When that happens, air rushing inside the cylinder will act like a torch and erode away at the head. Take a Dremel and smooth up the gouges so the don't have sharp edges. It will be fine.
