Check the impeller on the water pump for indication that it is hitting something as it rotates. If so there should be a spot that is cleaner, shiner than the surrounding metal. File, grind, tap it lightly or otherwise create a little space to eliminate the noise. You can also manually rotate the fan with belt off to verify it is the water pump making the noise. If you don't find anything check the generator as it uses the same belt to rotate.

I have rotated the water pump manually and it rotates smoothly with no noise. I have also spun the generator and no noise. I am by far no expert on 216 engines but is there some kind of baffle in the front of the engine block to slow the water down that may be missing and that is what is causing the noise?

Noise can travel. It's possible the water pump isn't the issue but something being affected by the belt tension is. Put the belt back on and start the car. While the noise is happening use a long screwdriver or socket extension as a stethoscope and probe around where the noise seems to be coming from. This can help you pinpoint the area of the noise. Once you know exactly where the noise is originating, you can start to figure out what moving parts are in that area. A good automotive stethoscope is worth the money because they open up a whole different world to the user. You can hear actual ball bearings rotating and pinpoint the exact location of noises. In the absence of a stethoscope, the method I mentioned above can get you close. <Using a screwdriver>

@webbie10 

Hi webbie10

Also, with the belt loose or off, check the crankshaft pulley for looseness.

Shake it side to side, and rotate it back and forth on the crankshaft.

Check the generator and water pump pulleys too.

I just had to replace my generator pulley a few weeks back because the rear sheave had come slightly loose on the rivets holding the pulley together and was making a funny noise at higher RPMs.

I hope your problem isn't this, but...

Sometimes if the front main bearing has too much clearance, it will run quiet without the belt, but with tension on the belt it holds the crankshaft up in the bearing until each firing impulse hammers it down causing a knock.

Again, I hope that ISN'T your problem, but it does happen.

thanks Tiny and Stovblt I will try all suggestions and let you know. I will probably not get to it until Monday. Again, thanks for the suggestions and help. Greatly appreciated. I will keep you posted.

Sorry it took so long to get back to you all. It ended up being the generator. The front nut was very loose causing the it to wobble and that was causing the ticking noise. Again thanks for the advice.