Great score by grandma, and with the added nostalgia of once being carried by grandpa, I'd say it's definitely worth cleaning up, putting a nice edge back on, and passing it down to your grandson one day...
That still has Plenty of life in it as long as the springs are still "acceptable". If you felt the blade's open and close fine, then drop some oil into the joints and work out the rust by opening and closing the blade's a bit and wipe off the stuff that runs out.
Use mineral oil, it doesn't go rancid like olive oils may, and it is still food safe if you use it to clean an apple. Head to the local pharmacy and they will have it in the laxative section.
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