Absolutely stumped - somebody help?

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Cordogs

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I brought this lil fixer upper in a deal with my moto stand, lei 125 xr. I know piece of crap, but I thought I got it cheap enough maybe I could fix it up a little and sell it for what it cost me in parts.
All was good for about five laps of the back yard until I heard this grinding noise in the engine it progressively got worse so I stopped it and pulled the side off.

Now theres two bits of metal in the case broken in half, not sure what there off but its definetly cast metal and the diameter of the hole is about 25 mm. When I push the bike in neutral it will role for about 1 to 2 meters and then the back locks up!
A mate told me it could be the gear selector being loose but I checked that n all is good.

Any help would be appreciated, Im pretty sure I've listed just about everything.
Cheers.
 
Could be the bearing side stoppers that hold the bearings in place stopping any sideways movement, and there is some caught in the clutch gear, not sure. We need more info and def some pics, sounds like it is a fixer now unfortunately
 
mate to me that looks like the bearing stopper off the centre casing,
387667980_o.jpg


the top hole is the gear selector assembly, and the two below that are were the two gear sets are housed, you can see the two holes were on the outside is the bearing stoppers, either one of these is the part you have that has broken off the casing(i believe), for this to happen id say you have had a gearbox failure or just thru lack of oil over time the section has gotten hot and fractured up till now, what do you think, can you see the section im talkin about.
 
My uneducated guess would say your spot on mate! So I guess its pretty well a throw away item then huh? I brought it and a damn good bike stand for $150 and I've spent another $100 on cables, levers and air filters. I figured it might be worth $300 running, I dont suppose you know where I could find a cheap engine?
Oh and thanks heaps for your reply mate, really appreciate it!
 
Yeah I've looked all over eBay, gumtree and dhz Im sure I'll come out with a loss if i purchase a brand new engine. Thanks again for your time mate, might just have to cut my loses?
 
mate if ur gunna sell pm me as i might be interested in buying
 

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