Found a Little Problem While Changing Oil

#1
Was changing the ol lady's oil in the 04 corolla today and noticed this. The pictures are looking right down below the oil fill cap.





Looks to be something on the camshaft that rubbed through the metal. I'm not at all familiar with the engines but I have reasonable mechanical abilities. Can anyone fill me in on this or share some knowledge. The car runs fine and we've never had any problems with it.
 
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