Hole in my turbo! Odd!

[bugity]

Has anyone ever seen a hole appear in a garrett gt2860r turbo before? about two weeks i was driving my 240sx w/ s13 sr gt2860r and the turbo started making a bad rubbing/grinding noise. as if one of the ball bearings was missing. i finally got around to taking off hte turbo and manifold today and noticed a hole the size of a flat head screw driver tip between the oil drain and the water line. the turbo is only a year old at best but useless to me now. has anyone seen this happen before?

http://www.geocities.com/voltidgenter/d ... cf0407.jpg

thanks