Take the engine out (very easy on these bikes) and take it to a professional aluminium welder or machinist.
As long as the damage isnt on the crank case join then there is no reason why a permanent and life long repair cant be done. If it is on the crankcase then its not the end of the world. You would only have to split the cases if you were changing the gearbox or bottom end.
Like Samson says, its more than likely a snapped chain or jammed rock which has caused the hole. The previous owner will have gummed it up to sell it..
Sadly, it happens all the time. I bought an XT600E like this a few years ago and got it repaired for about £50. I told the new owner who didnt care as the repair was perfect.
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Did some trips.
Rode some bikes.
Fix them for a living.
Can't say anymore.
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