Kanguro engine same as all the 350's, looks like possible seizure and rod breaking or big end or crank failure, unusual at low engine speed. Shame as the bike looks in great shape apart from a broken engine. I broke a hole in my Kanguro side casing by not torquing the rotor on correctly, fortunately a bit easier to repair than this one.
Regards
Robin
1984 Kanguro X1 home built special.
'Using yesterday's technology to create tomorrow's problem's today'