The condition of item #34 in the exploded diagram, "Front bearing cover gasket" would be telling. That, and the condition of the surfaces it mates up against. I would bet on the gasket being split, or damaged. The chuck would need to come off. It should also give you a chance to check the bearing/spindle seals.
There does seem to have been some trauma behind the chuck, and is it red Hermetite that I can see? Possibly a bit of a bodge.
There does seem to have been some trauma behind the chuck, and is it red Hermetite that I can see? Possibly a bit of a bodge.
