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I noticed that something is leaking from the gear box of my 824. I removed the plug and drained some out to show you in the picture attached. It has an oil-like consistency and smells a bit like gear oil. I have read that the gearbox is supposed to be lubricated with Lubriplate grease, not gear oil.

Can I just drain the oil and replace it with the correct grease?
 

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If that's what the manufacturer had in there originally, you shouldn't have a problem. It just might fix your leakage issue as well. Try to make sure you get as much of the oil out as you can, so as not to dilute the lubriplate.
 

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Well now I think I see why folks recommend 00 lubricant rather than the lubriplate Mag 1. I am having a heck of a time getting the Mag 1 into the gear box. It is supposed to take 3 ounces but so far I think I have managed to get maybe 1 oz in, using a grease gun with a needle designed for getting grease in under rubber boots. Is there a trick I am missing or is this why people just use the 00, which I am assuming you can just pour in?
 

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All 2 stage toro auger gear boxes get non syntheic 80-90 gear oil. Only the power shift transmissions use the lubiplate mag-1 grease
 

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All 2 stage toro auger gear boxes get non syntheic 80-90 gear oil. Only the power shift transmissions use the lubiplate mag-1 grease
not all of them some ( even my 521's ) come from the factory with grease( mag1 lubriplate ) althow some people add gear oil thinking thats whats in there. i have some marine grease here that i was going to use but i think i'll pick up some mobile 1 grease for my machines. down load the manual and see whats in yours
http://www.snowblowerforum.com/forum/toro-snowblowers/1722-toro-two-stage-snowblower-service-manual.html
 

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Most units call for MAG 1 grease while some call for 90 weight gear oil in that posted service manual. The larger machines tend to use the gear oil but not always. It is hard to guess what the rational is on this at Toro.

For them is probably easier to go with the grease. They don't have to worry about customers complaints about leaks.

There have been other posts where people have been using the 90 weight oil regardless of what came in it from the factory. They seem to feel it works better. As long as it does not leak out it would seem to make sense that it would lube the worm drive better.

I will add I have used Mobil 1 synthetic grease in my MTD.
 

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well with grease if the gasket fails the grease will still be in the unit and not on the garage floor
 
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