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Hello. My name is Tan.
That is the drain hole for the shift shaft cavity. The seal around the shift is leaking. # 47 is the shift shaft seal that needs to be replaced. http://www.marineengine.com/parts/mercury_marine_parts/static/img/CRUISER/60700/11.gif
Is this the area in which the oil is leaking. Red circle?
Yes you can replace that seal you will have to remove the lower part of the drive from the upper. Then unscrew the seal retainer.
In relation to the pic I posted where is the leak? Is it near the red circle on the same side of the drive?