That indicates that cam timing is advanced; not surprising, considering that the OE gasket is .043" thick--one reason among several that I recommend Japanese Vesrah gaskets that are made to OE spec. Also the head may not be fully seated on the dowels, which would advance cam timing. Put spacers on the studs, torque to ~15 ftlbs., install the cam chain tensioner (light pressure is enough), and recheck. And again, verify the TDC mark! In 70-79 units the marks are usually accurate, but it's common to find 2 to 3 degrees of error. Later units have marks on a movable plate, and it's anybody's guess what some twit may have done with it.