ONE OTHER THING IT COULD BE IS THE CLUTCH FAN BEARING !!
With motor off and battery disconnected grab the fan and pull un and down see if theres play in it from in and out to side to side, spin it by hand maybe its grinding possibly?
anys to me it like above or water pump bearing is crapin out from the prob stated,,
or possibly alt bearing..But considering the age of the motor Dont rule out the timing chain either,,
I had a 76 toyota 2wd truck with a 20r engine that i drove around with the water pump starting dripping and leaking then clanging .. It worked for along time before completely craping out on me..
What a noise to!!! ha Strong lil motor i bought a used water pump that wasnt even the right one it was a for a 22r and made it work by plugging a few extra ports on the pump housing worked for years after..