Hi Jay, I recently posted a thread on similar subject & 51 MERC-CT & others were very informative. Your pic. Is similar to an idea he posted. Mine is an 8BA but has a 59ab intake similar to yours . That drilled / tapped port is opening into the crank case & is one way to set up a PCV Sys. on a Flathead. Not sure if it had when you got it but needs to be plumbed to vacuum port on carburetor perch. Here’s the thread, post #14 shows a similar intake with same idea.
https://www.fordbarn.com/forum/showthread.php?t=296964