Here is some more pics. Please dont puke when you see the condition of the gun, you really have no idea what it looked like when I got it. It's obviously not a collector gun, but I believe it can be a shooter when I am done with it.
Given how dirty / sandy you said this gun was (and it looks the part) there may still be some dirt behind the bolt cutout in the frame or the spring / plunger behind it may not be working right. Did you pull the assembly and clean / oil it well when you cleaned the rest of the internals?
I did not do that, but it does move freely. I can see it move when you push on the cylinder release. I actually have never removed that part. It appears there is a pin that holds it in place, how do you remove it?
I am confused. You did or did not remove the bolt assembly? ... The front locking lug is, indeed, held in by a pin and has a spring behind it. If it is moving freely I'd just leave it alone but maybe flush it out well with WD40 or an aerosol and then relube...it should not be too easy to push in by hand (again...subjective).