If you machined the hole for the sleeve so that it was an interference fit (on the outside) you should be OK for a seal. A lot of things are press fit and hold coolant just fine (like the water pump shaft and bearing, for instance).
I don't know though, you might end up with more in machining than you have in SE housings.
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1986 GXL ('87 4-port NA - Haltech E8, LS2 Coils. Defined Autoworks Headers, Dual 2.5" Exhaust (Dual Superflow, dBX mufflers)
1991 Coupe (KYB AGX Shocks, Eibach lowering springs, RB exhaust, Stock and Automatic)
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