When I pulled the drain plug on the rear axle to start the process of replacing the leaking cover gasket, I noticed that there was A LOT of metallic goo on the magnet and a couple of chunks. No immediate signs of where it came from.

Tonight I had a chance to look at it more and I found that the pinion gear is totally shot. It has big chunks out of it. Strange cause the ring gear is fine. What could cause this? Will try to get some pics when I can get back out there and its not dark.

Now I am trying to decide what to do from here. Rebuild the stock axle? Get a spare someone has pulled, run it as is and then rebuild the current when I have time & funds? Do a swap to a modern D70? If I rebuild, should I do a gear ratio change?

Such a bummer.