Daizee, nice old Grove you got there. Love them old hatchets. I would probably go around the top of that head with bees wax or similar and fill that gap. I do that on the end grain and around the head any way to keep moisture out. Hang and handle looks fine to me. Sometimes I get those gaps in the front of the eye, at times they are unavoidable.
Cool hatchet!
Cool hatchet!