Let's see, the average car runs probably about an average of 50 mph through it's life so multiply that times 1700 hours and you get 85,000 equivalent miles, barely broken in as far as I'm concerned.
If the motor is otherwise running well and using no oil then I would fix the issue (it could also be a stuck valve, but it wouldn't run well if this is the case). While fixing it you can pull the intake and check out the cam too, if it's trashed ditch or rebuild the motor. First I would check the exhaust manifolds to make sure they aren't leaking and then I would pull the fan belt and run for a few minutes to see if the noise disappears. That's just me though, I'm cheap, plus I know how my engine has been treated.
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