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StuartMac and Jim Gregory,

On crankcase venting, thanks to your advice I found the 3 small holes that a PO must have drilled to vent the crankcase through the primary
Those 3 small holes are too low to use with a chain. They are below the bottom chain run and so the chain won't receive any lubrication. I've attached your picture (rotated) and also a picture showing where they should be. They need filling with JB Weld or similar and re-drilling higher up.

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Sam, thanks for the info. I think the 3 holes are not to provide lubrication to the chain, but to vent the crankcase pressure into the primary case. I always thought the level of the oil in the primary was what mainly lubricated the primary chain. Also, (see new photo) there is an oil line that is directed at the chain, located near where the stator wires exit the case.
Re the highlighted text above - No. The 3 holes are oil drain holes and they are too low.

Your engine case have been modified from the earlier, timed breather system to the later open breather system.

Originally your engine would have had an oil seal adjacent to the drive side main bearing to prevent oil from the crankcase migrating into the primary chaincase which would have had it's own oil supply entirely separate from the engine oil system.

From 1970 onwards the timed breather was discontinued. The oil seal adjacent to the drive side main bearing was deleted and the engine breathed through the main bearing, into the primary chaincase and then out through a pipe which runs to the rear mudguard. This means that the crankcase and primary case are connected and so any oil blowing through the main bearing would eventually overfill the primary case. To compensate for this the 3 small holes were drilled to let any excess oil in the primary case drain back into the crankcase. The oil line which is directed at the chain merely collects oil that is flung off the clutch assembly and drips it onto the chain.

Because your 3 holes are too low, the chain will run dry as the oil level will below the lower chain run.

As Stuart has mentioned, your cases have been modified to run a dry, belt primary drive. DO NOT use a chain unless you plug those 3 holes and drill them higher up as per the picture I posted above.
 

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The drilling of the 3 small holes in the primary then was only to allow oil in the primary to be regulated by the oil in the crankcase? So does that mean that prior to this the oil in the primary was primarily determined by how much oil the owner put into the primary, and assuming it was checked once in awhile it would be good? And these 3 small holes needed to be drilled at the proper level, so that oil would reach the primary chain but not any higher and mess up the stator, clutch, etc. ?
Correct. (y)
 

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The two larger holes have been drilled to accommodate a punch to drive the bearing outer race from the crankcase.

Your pistons are stamped 'STD' - standard, 71mm bore. Your digital caliper is only showing 70.5 mm? You need to measure the bores again in several places.

Pistons and bores look good to me, I'd re-use them, and the rings, as is.
 

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View attachment 802395
I'm putting my cases together and an having a bit of difficulty in remembering where the various studs go in each case before assembling. It may be I am missing a stud or something like that. This is a 1967 T120R. Is this the correct placement, 2 studs in the primary side case on the aft end, and two studs in the timing side case on the outside for the transmission case. I thought there might have been another stud somewhere and can't quite tell from the parts manual what goes where. Thanks for any help!
There is one stud (4) that goes in the top hole, the lower hole has a bolt (43). Gearbox studs are correct.

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