This might as well be the last post I make on this topic unless Ruger respond with new news.
So after waiting for the guy from NIOA to get back to me I called him today and in his roundabout way said there is nothing wrong with the rifle but agrees that a certain failed round could cause it to blow out that area.
I have put up a picture of where the gases came out of and understand that this is standard on the American Ruger .22
I have since looked at other .22's and noticed that others don't have a gap as big as the Ruger, size could matter
Would not say bad things of this rifle other than because it done this to me I would prefer to purchase something else, how could I hand it down to my children knowing it "may" do it again so I will just have to use my 1B until I decide or find another.22.
I hope this has helped someone but I take from this that any ammo can fail its part of the sport