Tailgate hinge issue(broken bolts and rust!)

[woofy]

Hope this is the right place to post this, if not let me know.

Ran into this problem removing Forum member girlxpup's 70 c10 tailgate, we had a bolt snap off in the bed, obvious route would be to drill it out but all that accomplished was a nice little hole through the bolt and the surround for what it screws into broken.
I have included some pics and id imagine some of you have run into this problem before, what should our next plan off attack be short of just welding the hinge on on that side.

thanks in advance guys!