What is the serial number on that engine, and the build date on the label attached to the steering tree?
Reason I ask: builds made before 4/1972 had engines with Stellite valve guides, which last over 100,000 miles. The ones made after that have cast-iron valve quides which can wear quickly if the bike was parked (and not prepped for storage) for a long time. Those later guides get rust in them while parked, and if not carefully restarted (as in, valve removed, guides cleaned and stem polished again) they can end up with too much clearance, and then leak oil. The exhaust guides made before 4/1972 are distinctive: they have no valve seals, nor a groove to hold one.
Ask your friend expressly: what piston-to-bore clearance was used in the "rebuild".