Been there, done that ....
My Chevrolet 1.5 ton had a crack like that, so I called in the Metallock site chap and he fixed it on site, in the truck.
but ...
First thing he did was clean the surface of the block and do a dye penetrant check, which revealed the crack went from than location ALL the way back to the bell housing. To be fair he just chased it down and fixed it - worked perfectly afterwards and didn't leak
Apparently this is at a change of section thickness and a known weak point. Since yours is bleeding through the paint I'd suggest that the crack may be longer - strip back the paint along the same line each end of the crack.
Get it fixed on site, by a professional, them just forget it, but do check your oil in case the water is going in, as well as out.
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Gordon, in Scotland
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