It does seem a little 'loose' for a new chain, has the block been align bored, if so you may have to get a 'align bored' timing set to suit the situation you have there.
Ok. After the post it did come to me. I think they did align bore the mains but I do not remember for sure. Machine work was done 3 years ago and motor was assembled 1 year ago. I will post new pics that may help. Thank you.