When you lay the head gasket on it, is the chipped area where the coolant was being ingested? Can't really tell from the small pics if there is enough damage there to allow a path for coolant to flow, maybe there was cast off from the head that didn't allow a full seal.
I'd be tempted to smooth it out with a carbide burr so there isn't any high spots, burnish it up with a scotchbrite disc and give it a try. If it needs metal all the way to the edge, check with a shop and see if it can be filled; even brazing should be enough to seal that small an area. Should be way more cost effective than buying a new head, especially if that's the only issue.