easy does it has expressed interest in boating at Lake Powell, and he lives in St George fairly close to both Lake Mead and Lake Powell. Lake Powell is about 3700 feet, and if one looses 3% of horsepower for each 1000 feet, this means that the 70 hp engine at sea level vs Lake power would loose about 11% or 7.7 hp. Thus the engine if new and in good condition would be putting out about 62.3 hp, The engine on that boat looks nice and clean, but has almost 1000 hours. A lot depends on how the engine has been maintained and run. If most of those hours are at lower speeds, and the engine was never abused, the boat will run slower, and you will have to lower the pitch of the prop to get the boat to plane, especially with cruising gear, on Powell.
If properly adjusted and in good condition, there will not be a lot of smoke when running, but more than the modern 4 strokes. It is well worth the money to have a good survey of the engine. Including sea trial with weight aboard, to give it a good load. Compression on all cylinders, leak down test and perhaps even bore scope the cylinders.
The initial C Dory was powered with a 70 hp Johnson---as this boat is. My 1993 had a 90 hp 2 stroke, and It was adequate. It is not going to be a speed demon. However if in excellent shape it may be adequate. Today, one thinks of a 972 hour motor to be "worn out". May not be the case. Many who run their motors at lower speeds can get several thousand hours.