Small chunk missing in SM465 case

[K20-Bowtie]

Hi SM465 Experts,

I picked up a used SM465 transmission and NP205 transfer case to rebuild and install in my 72 K20. My currently installed transmission and transfer case are leaking, so my thought was to rebuild the recently purchased transmission/transfer case and just swap them out.

When I began to take off the items to gain access to the rear output bearing, I noticed a small chunk (less than a size of a dime) missing from case surrounding the bearing (see attached photo). No cracks noticed. I let out a string of curse words, but then paused to think maybe its still salvageable.

1. The chunk is high up in the case - well above the fluid level.
2. The transfer case housing surrounds the case at that point protecting it from the elements.

My biggest concern is that a crack may form causing the housing to fail.

Any thoughts on the matter?

Thanks!