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But could the failure of any internal part result in contamination of the water?
The formation of black or red sludge in the system is caused by oxygen in the water reacting with iron content in radiators. Theres a lot about the science of it I could rattle off but basically its down to the oxygen content within the water. Any oxygen added to the system when filling has usually depleted to levels not sufficient for prolonged corrosion within two to three months.
If you have large amounts of sludge this is a sign of air being drawn into the system, this can be caused by a few ways.