Take the chain off (undo the joiner link and remove) and run the chain over a piece of rod, watch the chain for any tight link's.
If it doesn't bend as smooth as the rest at certain points then that could be the problem
Also check the condition of the front and rear sprocket's,
and try moving the output shaft on the engine and see if there is any noticeable movement, forward and back mainly.
The seal would most likely be leaking too if there is excessive movement there.
Turn the sprocket around with the chain off and see if the noise is there still too.