It is a crankcase breather, originally it was connected to the vac port on the side of the SU carby.
There is/was a steel gauze flame trap inside it, either that is blocked with crud (very common on old motors) or the blingy anodized filter is.
If the gauze is blocked, pull it out the bottom and replace with a S/S woven pot scrubber from Woollies or Coles. Perfect fit...

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DrMini- 1970 wasaMatic 1360, Mk1S crank, 86.6HP (ATW) =~125 @ crank, 45 Dellorto (38 chokes), RE282 sprint cam, 1.5 rockers, 11.0:1 C/R.
