Q about leaking, milky gear oil in a '69 185-srv

[LaurelG9]

I'm having trouble with a '69 185-srv. I thought at first it was a prop problem. I had a new prop put on (and the old one re-manufactured, and I still have it). Not long after that (but not RIGHT after), I started to lose forward thrust. at first when I'd get to about 2200 rpms, but then, most of the time, unless I was just above idle. Also, I'd started to notice an oily sheen on the water, so I took it out and took it home. It's leaking what I *think* is gear oil (it smells like gear oil), which is also somewhat milky (water/bad), from a tiny hole that seems drilled into the right side of what I assume is the gearbox, right behind the water intake. Close to the bottom rudder and the prop. It's not leaking much -- a couple drips over the course of the afternoon -- but any idea what I can do, or should I take it back to the mechanic? And, is that hole supposed to be there, or did I damage it some way?

Thanks in advance.

Laurel in Marblehead/Dayton, Ohio
1969 185-srv SeaRay

 

[midway]

Not sure about the hole, I know there is a drain hole on the drive to drain the water out, if you are leaking milky substance you have water in the drive and leaking seal or seals, get it fixed before the damage get worse. Loss of forward thrust could be a couple of things, prop hub, which you say is new, drive hub on engine, or internal drive failure. Lets hope your mechanic is trustworthy and if drive needs only seals that is what you get and new hub if that is the problem and not charge for new drive just for hub. Either way it has to be fixed.