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I had the same problem on my LT1 motor. I thought about the low oil location, but didn't want to mess around with it. The only other easy location was the drain bolt. So, I took a 12.xx mm bolt of the right size, drilled out the center, and glued a VDO temp sensor in there with JB weld. Worked well till I was re-torquing my drain bolt and sheared the bolt. Turns out I drilled a little off center and there wasn't enough material on one side to keep the threads together.
I'll do it again when I get a chance.
If you do try and do something with the low oil location, take some picts and send them to me. I'd be interested in seeing how it came out!
take care,
simon
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