G'day folks,
The Repair Manual [Gregorys No. 199] I have that covers this engine, says to use Loctite 504 Gasket Eliminator, for sealing the crankcase joint - a thin bead, taking care to run it all the way around each stud and bolt hole.
This stuff is pretty exy, for a one-off job, so I'd look for a high-temp silicone equivalent from the Permatex range, at your local motor parts factor.
Crankcase flange bolt and stud nut torque spec is 15 lb-ft/20.3 Nm, BTW. And just seat the seal flush in its bore, as you'd do with the thicker version.