Yes steve- this is the water pump by-pass hole. There is a secondary backup al behind it to stop the water entring the gearbox. Replace the waterpump seal. Most suzukis' use a mechanical seal. they are prity easy to change- although usually requires removal of the clutch cover. I always replace the mechanical seal, back up seal & the bearing all at once.If it is a standard seal type- be sure to ckeck the shaft of the impellor for groves worn in it where the seal contacts the shaft - in mechanical type seals this does not apply.
Hope this helps regards
Andrew
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