Thanks for all the interest in this thread.
I can confirm the Sanli is all back together and running really well. It now starts on the first pull from cold. It has a great full speed sound and a very smooth idle. No more strange whistling/ chuffing sound.
The bottom left head bolt was loose which I think contributed to the blown head gasket. The remaining three head bolts were nice and tight. It was very strange the valves when first look at had no clearance at all.
I have given it a good test and Iļæ½m confident enough this can be moved onto a new home. Well somebody with a smaller yard.
Again this was quite a cheap fix however it was a little time consuming for a Chonda!
I noticed the intake valve on this engine has a little insert cover that goes onto the end of the valve spring however the exhaust side did not. I re-installed it as originally found but was curious as to why one was not present on the exhaust valve.
Jaffa