Grumpy, your red circles are the flash reflecting off oil.
No swarf seen, had to get a magnifing glass, eyes are not what they used to be.
The engine no. I have embedded into the image at the start of the thread.
Engine no. 92908 1963-02 79112705
Engine is about to have its 33rd birthday, how cool is that.
At this stage I will pull the flywheel to examine the points.
Decoke all.
Inspect valves, lap them if needed, check gaps.
Clean tank & carby.
Clean & reset magneto.
I am on a seesaw, do I split the case and inspect, remove and clean rings.
Or
Do everything I can from the outside, fresh oil and test run.
