is my engine dead vf500

following on from my oil leak i stripped the engine to change the countershaft beaing oil seal.
this is what i found there was some play on the shaft and i have a spare shaft so no worries. but it appears the engine casing has some damage ?
any opinions before i waste more time and money cheers
i assume the scouring has developed over time and now spoilt my day


chris

 

That is piss poor but all is not lost. There are bearing mounting products for just such a disaster. Have to resort to this kind of thing myself from time to time when my tit is in a wringer. Link.
Permatex Retaining Compounds - Industrial Supply Group