@standardthreadNo, not sure the oil is definitely from the sump gasket but the block is 'dry' above this line and it seems that someone in the past has attempted to silicone / rtv the sump to excess.
I do need a new release bearing and was in two minds as to pulling the box from the inside or just pulling the engine and box together out of the front.
I have compression values of 170, 160, 165, 170 (Engine warm but no oil down plugs), there is no knocking that I can hear and decided that the motor was basically sound.
What would be the usual overhaul parts / time for these motors? Would you change all bearings as a matter of course or inspect and reassemble with original parts if okay? I took my previous spitfire off the road for a bodywork resto and it took years. I would like to enjoy this one on the road and I don't particularly want to sink an enormous amount of cash into this but a winter project could be entertaining.
Thanks