Hi folks,
I ran the engine for about 15 minutes and the oil pressure reduced to around 6 bar (87 psi) at 3000 rpm and 5 bar (73 psi) at 2000 rpm. So hopefully there is no major blockage in the delivery system.
The oil was still foamed during the running but did seem to clear relatively quickly after the engine stopped.
The hot compression test showed 11 bar (160 psi) from the horizontal cylinder and 11.25 (163 psi) bar from the vertical cylinder. So things look pretty healthy in that respect.
(I have ~ 1.3mm squish with the Pistal HC pistons and plenty of valve clearance with the ST2 cams)
If the oil looks OK and I don't have the same magnetic sludge on the sump plug when I dump this fill, I'll assume all is OK and progress without stripping the engine.
Next will be to finish the wiring, then fit the tank and seat and run it through the gears down the road.
That should be fun. I'll let you know how it goes

Thanks for all the input.
Cheers
Rob