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I say you rebuild the existing powertrain, clean up the sheet metal as best you can, then prime and sand the crap out of it, before going at it with an HVLP gun filled with Eastwood single-stage urethane.
But you know, garden-variety Hornets can still be found relatively frequently and fairly cheaply. You could build one into a functional equivalent pretty easily and relatively cheaply, while having the freedom to update and personalize the build without ruining something rare.
Crap, I gotta stop reading articles on this site.
Paul Brodie started with five surviving photographs of the bike and a corroded crankcase of a similar OHV model, and has made what can arguably be called either replicas or modern recreations.
Read the whole story here, but I warn you, you will need plenty of time (and humility):