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Cheers for putting my mind a bit at rest. I suspected it was okay after a bit of sanding, so going to clean it up a bit & then get some clearcoat on it to protect it a bit better. Either way of resolving this (getting a new fork, trying to sort of this one) isn't going to be pretty, & with the dings in this frame already it's been destined to be a rat bike for a while.
GideonPARANOID
Looks like oxidation. That is what happens when aluminium isn't properly protected from the elements. Only happens on the top layer. It isn't dangerous, but it is ugly.