Engine Rebuildable?

My stangs old engine was the original 289. I have since replaced it with another 289 from a 66. However I still have the old block and heads on an engine stand just sitting. The engine had lost oil pressure and I had not known as I did not have a gauge at that time and it obviously seized. My mechanic guy when he had inspected it said it was unusable and I went on to buy a new engine that he knew about. My question is wether or not the block/assembly is rebuildable or is it just a boat anchor? I know when he dropped the pan there were shavings in the oil from the cam...but would this mess up the block completely?
BTW this all happened because the oil pump shaft by the distributor fell into the pan. . .

Well it was just I did not have the money at the time for a rebuild and he knew a guy with a complete 289 from another mustang. So I saved out some money and got the engine which supposedly was recently rebuilt for $700. So if I could actually rebuild this engine it would not bother me much as I would have two engines. The stroker idea was exactly what I was thinking if the block itself would be fine. . .I would slowly put together a 347 if I could while being able to drive the stang. No the mechanic did not make anything out of this, he is a family friend and works on all our cars. He did not, that I remember, say it was not rebuildable at, all I said he just looked at it for me to find the problem and told me it was undrivable obviosly because of the shavings in the oil, it had just run a lil to long without oil. Looks like I'll tear it apart then, more to learn if I do.

Thanks a lot guys! I guess I'll take it apart and find a place in the area to check it out. Is there a way I can tell if it has been bored out before or a way to measure it and find out how much so? Thanks so much.