2004 yukon transfer case leak

[earnhardtnut]

I am currently working on a 2004 yukon with a transfer case leak. The fluid on the ground is blue, autotrak II fluid. The transfer case has small pin holes developing in it. Aside from replacing it, the only answer i had was to jb weld it. The case is magnizium or something like that and Im told cannot be welded. Can any one tell me why this is happening? I found something on line about a pump clip clearance problem rubbing a hole in the case, but I am not sure that is my problem, I have already fixed two holes. The transfer case is a new process 246, any help would be great!!! ( befor it imploads )

[curious"K"]

I've had a similar problem. The leak was on the tail piece to the rear driveshaft. Apparently caused by an oscillating pump inside the case.
I had an after market pump stabiliser ring installed, rear bushing and seal replaced.