[OZ4]

Yes the IF frequency could easily be off 10khz (or more) too low. It helps if the frequency generator is accurate. 

I would think the oscillator should be able to tune even a little below the normal operating range before dying.

If your not sure about the frequency generator try the digital AM radio trick to listen for the local oscillator. When the model 60 radio is showing 700khz the oscillator should be at 1160khz  700+460 the IF.