I feel sure this is bondo/spot putty that was installed to cover something. It being a circle like that does make me wander just what they was covering up because most of the time its used to hide imperfections in the castings & its spread out a lot more.
Its already loose ( its not the casting cracked), so yuo may as well dig it out to see what your working with ( screw driver or picks will help get it out). Then if needed you can recover it with some better bondo/putty as needed. Its possible it has some pin holes from sand when it was cast under there. WHen you get all the bondo out if you go to install more use lacor thinner to clean the metal and this will help anything you use stick much better. If it has oil seaping through the metal then it will need drained & make sure you get all oil out of the speaping place or bondo will not stick again ( spraying the lacor thinner works great here but should be done outside for fire & health reasons).
If it does turn out to have pin holes or some leakable imperfection after you clean it then a layer of J&B weld would be good to use so it gets sealed back up. But it must be clean of oil film. Then bondo over the weld and all should be good.
AS far as taking the mill apart just read Hoss's G704 thread and you should be able to find any info yuo need. And your right lifting the column & head together is a bad idea. Lowering the head down to the table and using something like a block of wood to support it while you take the bolts out to remove the head will help. Around where the head swivels will be three or four bolts that will need removed to remove the head. Once the head is removed then removing the slide from the column for the head would be next, then remove the column.
Take any handles or switches or anything else you could break off the head & this will help make it safer & less chance of screw ups.
Remember the head should have oil in it & there should be a drain on the bottom of the casting with something like a set screw to remove for draining it. It may need cleaned out anyway & better oil installed would be best ( just incase of sand in the oil from where it was cast).
As far as weight I think atleast a couple people could handle the head, and maybe even one. But its best to be safe & try to have something like a engine hoist to lift the head. You can figure the head/motor & column will weight about half of the whole mills weight. And then you spit this up when seperating so two people should be able to manage it without a lift if you have to. But dont under estimate it, even if it where only 50lb it could be bad if you drop it.
Jess
GOD Bless, and prayers for all.