Hey JP....those clearances seem fine to me. I thought when you said loose, that it would be .0035" or .004". That's what I was expecting. I don't think it's as loose as what you think....sounds fine to me. Not that I'm a pro engine builder or anything....I've built one....hehehe....But I do play one in the garage.
In my opinion everything should work out fine for you....but if you would like to see 60-70 psi on the gauge....swap your little
oil pump out...