Wouldn't the serial number date this gun to around 1870? If I was in your shoes, I'd focus on getting the forend loop corrected and a replacement forend/iron fitted to it. I suspect that job alone could be done for substantially less than a thousand dollars if you find someone like Brian with the spare parts on hand. Your battle could be considered mostly won with that taken care of. At least you'd have a complete wall hanger at that point. Impossible to say without a thorough inspection by a qualified gunsmith, but the old gun may even be shootable with just the forend situation sorted out. Solely because of the family history, I'd have to set about making it whole again. Just my $.02, of course.
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