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Tony,
This all sounds so familiar! Just pulled the head on my B18 and the last head bolt broke just below the surface of the head. Does the B16 use studs. If so your problems are more difficult. On the B18, with all the remaining bolts out it was posible to soak the broken bolt with penetrating oil and rotate the head on the broken bolt until it was loose enough to lift the head off. If you have studs, it may be possible to remove the studs with a stud remover and rotate the head. A good stud remover works wonders.
Also, you could drill out the old stud. This is nowhere near as difficult as it seems (unless you have stress hardened studs) Try it and see. All you need is a good drill, some quality bits and a steady hand.
Good luck, you will need it.
Chris
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