I'm on my first grow, a few weeks into flower. While I may not have experience growing this particular plant, I do however have experience with botany in general and more importantly microbiology/mycology. Here's my input:
I would suggest you chuck em. I know that's hard to hear (and there may be more qualified posters who will argue against it), I'm a few weeks into my first flower and having issues with powdery mildew...I know what a drag malevolent microbial menaces can be. Those buds are in VERY bad shape, and from what I can tell from the pic, I see a lot of grey going on and when I think grey, I think genus Botrytis (I'm not sure if cannabis is susceptible to it but it makes sense, the stuff commonly infects old fruit). B. cinerea can cause some serious lung infections/reactions in certain people. Peroxide will kill any spores of the mold, but won't take care of the mold itself, and this is just a guess, but I think butter would no doubt be horrid tasting (if not dangerous).
I suppose you could attempt an extract (soak em in peroxide and then use an alcohol at some point in the extraction), but I think that taste would come through if you do not have the proper reagents/equipment to perform high quality extracts. I suppose they can be used for making bubble hash if you remove as much of the mold/spores as possible (any remaining spores will be too small to get picked up in the screens), such a product would certainly be safe to smoke, but again I have doubts on the taste.
Take all of this with a grain of salt and wait for someone with more experience with cannabis molds to comment as I'm just guessing the culprit is Botrytis, there could be other more dangerous things hiding in there (aspergillus....), which would make the buds difficult to even be near without a proper face mask.
T
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