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Not to fear, it is not, was not the head. Replaced the oil seal on the crank, no more oil leaks. Cost: $40, parts and labor.

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Q: You bought a 86 Toy 4x4 It looks like it has an oil leak from the front of the head gasket It had head gasket replaced before you got it Will retorquing the head stop the oil leak or is it too late?
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