Picked this thing up 6 months or so ago. It was in a barn for probably 5+ years, but engine rotated freely and felt like it had great compression. I rebuilt the carb, chamged engine and diff oil, rebuilt brake adjusters, master cylinder, wheel cylinders, brake cables, etc. got it running ok, checked compression and was 160 cold, so within spec. After I had it running, I noticed a slight tick so I checked the chain tensioner and adjusted the valves. The valves seemed to be within spec, but I readjusted anyhow. The noise seemed to go away and engine sounds good.

Fast forward to about 2am this morning. The drain plug is stripped so I was going to fix it. I drain the oil and out of habit, I look in the oil and see quite a few metal shavings. I refilled with new oil and ran a compression check and it is now reading 150psi cold. Engine still runs smoothly, not sure what might have happened. So I am guessing my next step is tearing the engine down. Any ideas of what to look for?

I forgot to mention. On the first oil change I did. I checked the old filter which was installed correctly, but was slightly collapsed and I did find one or two small shavings in the old filter which had me concerned at the time, but nothing like this. The old filter was installed correctly and I made sure I installed the new filter correctly. With all the shaving I found now, I could not find a single shaving in the oil filter. I didn’t tear it apart since I didn’t have a spare to replace it with.