I hope it can be saved because I've always liked the Rollfast brand. Even if it's not the roadbike I would still like to get at working.I'd say it needs to be taken out, the head tube cleaned, and maybe some type of shim to make it fit tighter. I've never seen rust coming out around the cup like that.
I already have one of those.I don't know if you have a co-op or LBS nearby, but there is a tool that can be used to help remedy that kind of headtube damage. It is designed to ream the tube and ensure the top and bottom surfaces are perfectly parallel.
https://www.parktool.com/en-us/product/head-tube-reaming-and-facing-set-htr-1View attachment 218920
Enter your email address to join: