then you should be calling the dealer for a new car/free repair. even if the car was sold as is, they concealed a known problem with the car. Call GM directly and file a complaint. NO reason if the sold you the car with the problem, that you should get swindled into fixing it.

ALSO, it wont need resurfaced, most likely just a few new valves and lapped. valves are $11 a piece, the head gasket kit is @ $100 without shopping for a good price, head bolts are another $100 if needed. $150 or so for the timing kit, So you looking at maybe $400 in parts. To pull the head, everything else is included (timing belt, etc) but the repair to the head is extra. It is "generally" 4-5 hrs to R&R a head unless they start stacking included operations, so even at $100 an hour, it would be about $500 repair time. So it could be done for $900 at full rate.

call a few smaller garages, not knowing the area i found this:
Specialty Engine Swaps,Transmissions,Differentials Etc.
$600 labor for a new engine, plus a $500-600 engine = $1200.

but i cant tell you what to do, i would do it myself and it would cost me $300. but also i would have a lawyer on the phone with the chevy dealer to let them eat the cost, or repair it themselves.

Also even at $2000, it is less of a loss to repair it than to buy a new car.