HEI Rebuild Problem

I ripped apart two HEI (non-ecm), cleaned, polished, and tested every component, but there is still one problem I have before I can put them back together. I noticed when I pulled them apart, I noticed under the pickup plate, and under the felt washer and its holder, the area around the distributor shaft bore, was filled to the brink with some sort of reddish clay-like substance.
I have no idea what this stuff is, and wonder if it is crucial. anybody...?

reddish clay-like substance??? Only thing that comes to mind that should be there is the pickup coil. I have seen pickup coils that fell apart after the housing broke allowing the shaft to tear into them. but they looked like small bird's nests.

Dude, that is dust from the cap and rotor....as long as the shaft is tight you are good to go......dic-z ;)

It's probably a mixture of the grease and dust.

but how could all that make it into the sealed area underneath the pickup bushing...? Would it hurt to fill it up with grease? If not, what type?