Might have lost oil pick up?
 

Running a 496, built and dyoned by builder. THe motor has maybe 5 miles on it. Had it out the other day for a cruise and noticed my oil pressure was dropping to around 10. I managed to get it home and keep the rpms up to keep pressure up. Started it today and it had 60 lbs with me holding the motor at 1500-2000 until it would idle. Once idleing it slowly dropped from 40 to 20 then to 10 when the motor temp got to 150. Coild my pick up be sitting in the bottom of the pan? I'm going to drain the oil and see if i can hit the bottom of the pan and listen for the pickup, or put a coat hanger in there. Another question I have is when cranking the motor with the coil wire off, my oil pressure gauge (mech) would only show 10 pounds while cranking. One thing i noticed is that when I rev the motor the pressure goes up, but i'm hearing this high pitch noise that gets louder when you rev it.

Oil pickup
 

You could have some rtv or gasket maker that has broken loose and is clogging up the pickup. I'd recommend pulling the pan and checking it and not fire it up again until checked out.

motor
 

Drained the oil and changed filter. Found gold flake in filter and oil. Motor is coming out and having a face to face with the builder tomorrow. I have no idea what could have caused this. Motor has about 5 street miles, nothing past 1/2 throttle. Also motor was dynoed and tuned by builder. Any suggestions on what could have happened?

Sounds like the bearings are gone. Did he line hone the block ?

Pull your oil filter and cut it in half. If you have a bearing problem it will have bearing material in the folds of your filter.