Saronni Frame in Berlin. Cracked & Rusted Chain Stay

Hey all, I was hoping for some advice on this damaged Saronni frame. I had it powdercoated about 18months ago at Armourtex, it appeared that they did a lovely job, but about 6months ago I noticed a rusty split appearing on one of the chainstays near the dropout. Upon closer inspection I saw that the surface was a little bit bumpy there, & when I picked at the split with a scalpel it flaked off & a rusty crack appeared & almost looks to have been eaten all the way around.

I have really little mechanical knowledge, but I'm wondering if this can be or even if it's worth trying to repair? I'm pretty broke & kind of need a bike.

I'm based in Berlin, & was also wondering if anyone has some English speaking contacts who might be able to advise on whether/how to fix it also.

Here are some photos, thanks for any suggestions:

That's dead. Maybe it rusted from the inside out. You will need to get a new seat stay I reckon. I don't know anyone in Berlin I'm afraid, but there must be someone!

can you wrap it in a tin can and wrap that with multiple jubilee clips?

Looks very much like the whole stay will need replacing, best to do both at the same time. I guess water gathered in the bottom of the stay and could not get out (possibly due to the powder coating).
I will take the frame off your hands in exchange for a small sum if you can ship to Belgium.

If there's rust there, how much more is hidden under the powdercoating?

yoav: "If there's rust there, how much more is hidden under the powdercoating?"

Yeah, I'm not sure how much, it's anyone's guess really!

gereonb: Looks very much like the whole stay will need replacing, best to do both at the same time. I guess water gathered in the bottom of the stay and could not get out (possibly due to the powder coating).
I will take the frame off your hands in exchange for a small sum if you can ship to Belgium.

Sounds extreme, & expensive :( If I sell it, I'll keep you in mind. How much is a "small sum"?

Alkali: can you wrap it in a tin can and wrap that with multiple jubilee clips?

I'm not sure man, it's pretty close to the dropout, I'd feel safer riding it if the rust was cut out or removed.

Butters: That's dead. Maybe it rusted from the inside out. You will need to get a new seat stay I reckon. I don't know anyone in Berlin I'm afraid, but there must be someone!

Yeah it looks like it rusted from the inside out, there was a small hole drilled in the frame (for what reason, I have no idea) maybe water was gathering in there?

Thanks all for your comments, it's a real bummer, maybe there's a cheap option to get it nastily fixed & it will just have to be a beater.

The hole in the picture is usually drilled prior to brazing a closed tube, e.g. top tube, fork leg or seat stay in order to let the expanding hot gases escape, otherwise the joint will burst open, and even spray molten brass everywhere. A good frame builder will seal up the hole with a spot of silver solder after the frame has cooled down but I have seen many cheap frames where this was not done, and it can lead to water ingress and rust.