That hole that is has been covered in siliastic I believe should contain a little screw to hold the breather in place. Mine was also covered in a horrible orange gunk, which seem seemed to result in more of a blockage than a seal, and thus oil leak down the block. My breather hose from this breather (on the rocker cover) is attached to the back of the air intake manifold (the flat end near the bulkhead). Yours appears to be plumbed into something else..?!
I notice that there is alot of oil on the side of the block - perhaps the rocker cover gasket is leaking also? Mine was and resulted in oil dribbling down the block onto the a hot exhaust manifold - a $3.00 gasket and job done.
J

