Re: alpha one lower unit oil leak ?
If it's a GEN II, and it sounds like it is, you would be best to drop the lower check the quad ring as mentioned above and also check the vertical drive shaft seals both with a flashlite and by feeling that they are still there and seated.
Problem for GEN IIs is those pesky seals either being knocked loose putting the lower on, sans proper care, or just coming out by themselves.
Check your upper too and make sure it has oil.
The hole you mention sounds like a weep hole to drain water from the drive to prevent freezing. Oil that is collecting between the upper and lower will exit there. Water in lower will displace oil up and out, possible causes, shift shaft seal, water pump base, bad or missing quad ring, prop seal. Pull prop and check for fishing line in seal behind thrust washer.
