Eamon,
I had a similar failure, however luckily in Chile where there is the most advanced KTM workshop in the South Americas... Run by a former German mechanic, Roland Spaarwater, today supporting KTM drivers in the Dakar in Africa and since this year in SA. I also know Diego M from the KTM shop Lima, he is more an Importer and can give little to no support on parts. KTM Sommer, now KTMTeamWest, is THE address if you need parts quickly across the world, but Diego can help you to get those parts through Peru customs as his contacts in Lima (Miraflores) are excellent. This speeds up things.
I would now recommend that you do very often your servicing of the filters and clean the magnet, although Peruvian mechanics are clever and great (I have a Taxi business in Lima that need tons of maintenance), the KTM needs its own parts. As I guess you are on your way South?!?, it would make sense to stop at Rolands place, either in Santiago or Chillian. They will have the parts, the bits needed to finish your trip as they supported me. His engine still runs today and has since survived to African Rallyes, now I use the KTM only on the street. While you have opened the "heart" now, please clean all parts and oil tubes very carefully (incl clutch area etc). And go to Nortons, drink a Cuscena, greet Chris (?) and put a remark in his book, you might either know or meet in the future some of his visitors. Cheers and Suerte
Rasmus

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Rasmus
www.panamericana.info