Nicely done! Glad to hear you and your R56 are back on the road...happy motoring going forward...

Found this:

How to convert HEIC to JPG on iPhone

If you don't want to worry about HEIC files at all, you can simply set your phone or tablet to always use the JPG format:

1. Start the Settings app.

2. Tap Camera.

3. On the Camera settings page, tap Formats. 

4. Tap Most Compatible. 

Thanks for the update. Great to hear you have the car back together and on the road!

I will look into the new apple file formats.

Update... Its back on the road. 
I was able to get the head repaired and rebuilt.  They ended up replacing all the exhaust guides and replaced the valve seat that came out and an additional one that was suspect.  This machine shop has an extensive amount of experience with Aluminum Heads that suck valve seats.  Mostly on Chryslers, but also several Mini's as well.  They have found that it they STAKE the seats, the chances of them coming out again is very unlikely.  So, I took a chance.   
Since the block was in good shape and there was almost no taper in the cylinder walls, I was able to use STD. Dimension Spec replacement parts.  They ran the hone in all the cylinders and polished the crank.  (It pays to take care of the engine oil/filter regularly as mine was in great shape, only because I have been watching this drivetrain since day 1) 
The only challenge was getting the parts.  The machine shop was SOL on getting me pistons/rings and valves without waiting 12 weeks.  I found a company in Seattle, WA that has a few sets of STD. sized rebuild kits (bearings, pistons/rings and wrist pins, head bolts) that I was able to grab.  I managed to pick up another bad head which we took the valves out of to replace the damaged ones in my head.  I think the hardest parts to locate were the rear main-cap bolt covers.  These bolts are outside of the oil pan and need to be sealed with a special freeze plug type cap. 
I reassembled the short block and long blocked it here at my home, saved big $$$.  I was a little hesitant because of how temper-mental these engines are, but I was able to locate all the specs to complete the assembly.   
Long story short, this week I completed the first 1000 miles on the rebuilt engine and new clutch.  Going to do an oil and filter change today, same way I used to break in my hot rods (V8's) of my younger days.  Surprisingly, it’s not using oil and the temp has been very stable.  I have about an hour commute 1 way and its mostly all highway speeds.  Been keeping the RPM's under 3K.  
Since I had everything apart, I bought an A/C O-ring assortment kit and replaced ALL the seals in the AC system, vacuumed it out, it held a -30Pa for over 2 hours, so I flooded it with 500g of R134A and it's been amazing, the coldest I can ever remember.   I'm here in NorCal, so the heater is on at 5:30am when I leave and the AC is not on in the evenings on my way home. 
Gassed up yesterday, 37MPG.  

I’m not having much luck uploading pictures, my iPhone uses the new HEIC format and this forum will not accept them.  When I figure that out, pictures will be uploaded, I took lots of them throughout this whole process. 

 
  

Even though the engine has been damaged, I think its rebuildable.  The cylinder walls are not gouged, infact I could not catch any scratches with my fingernails.  In my youth, we fixed heads in worse shape.  

Does anyone know of a machine shop in the NorCal - Sacramento or Stockton areas?

Has anyone rebuilt an N12B16 - R56 Non-Turbo Engine?  What did it cost you?
This was such a good running car for a mini cooper that I would hate to give up on it or take a gamble on an unknown used engine.  

Sorry for the bad news, but thanks for the update.

I got the head off.  
#4 cylinder - one of the intake valve seats dislodged, broke apart and pieces fell into the combustion chamber.  Damage to the head and top of the piston.   I will rotate the crank to see if there is additional damage to the cylinder walls after I vacuum out all the debris.  

#2 cylinder- Still do not understand why the loss of compression - still evaluating. 

I will provide some pictures later. 
I am baffled by this.  This car has never overheated.  I monitor the coolant temp with the addition of after market gauges.   

Let us know what you find after you pull the head...

OK, this is by far the strangest thing I have experienced among my two R56's. 
Drove home from work monday night, no issues, as usual, it was running great.  Tuesday morning, hit the start button, it sputtered, sounded like some really bad misses and horrible banging and knocking.  The engine raced for a few seconds and died.  OK, tried it again... nothing, sounded like it wanted to fire, but also sounded like atleast 1 dead hole.  
This weekend, I pulled the plugs, found the #4 with the insulator had slid down and covered the Iridium Electrode, No signs of any porcelain missing from the plug.  Swapped out the plugs, won't run.   ???Compression Check - #1 = 160#, #2 = 0, #3 = 170, #4 = 0.  Pulled the valve cover off, Timing chain intact and with good tension.  I changed the timing chain almost 30K miles ago, the same time I replaced the clutch.  I checked the cam timing with my cam lock tool kit, the pistons are in the correct reference position, crank/flywheel locked and the cams are correct.  WTH!  When I try to rotate the engine with my breaker bar on the harmonic balancer bolt, its really difficult.  I should have the head off today or tomorrow to see what I can see. 
Has anyone ever heard of this kind of problem with the R56  N12B16 engines?  These cars are goofy and tempermental, we just get used to it, but if this is something that has happend with some regularity, I just dont think I am going to dump several thousand dollars into this car only to potentially have this happen again...
*I replaced the factory crappy dipstick with the  CravenSpeed Flexible Dipstick - This car actually doesnt use much oil, so it never gets below 1/2 quart low
*I have been a stickler on the cooling system, no leaks, what-so-ever
*Added the CravenSpeed gauge pod with AutoMeter gauges so I can monitor the oil pressure and coolant Temp.
I am baffled by what has happened.  
Your feedback and knowledge is appreciated.