A chunk of that sleeve is missing looks to me that someone already tried to bore the cylinder out to install a sleeve and a chunk of the factory sleeve broke out.
You would have to call someone that sells sleeves like LA sleeve and see if another sleeve can be installed in that cylinder, it would have to be a oversize sleeve.
Just a guess but you would first need to bore the entire steel sleeve out then measure the hole call see if they have a sleeve and or just send it to LA sleeve as is for them to evaluate.
An alternative to throwing it away would be to install the special made CR500 sleeve that has the port openings to match the Pilot cylinder, LA sleeve does this too.
I have one of these cylinders in my shop
http://www.pilotodyssey.com/500cc.htmFL670 had one of these Pilots
viewtopic.php?f=1&t=1145&start=0Once the cylinder was made into a 500 then you need a
speedchaser head with a special dome for the 500cc.
Another alternative would be to have a aluminum sleeve made (LA sleeve again) have it installed, ported up the way you want then send it out have the aluminum plated.
The cylinder is salvageable but fixing that cylinder will not be cheap no matter what route is taken.
You might ask speedchaser if he can install a sleeve for you and how much .