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I found that dropouts are needed for derailleur setup & fork space>120mm...can I install any hanger or weld a dropout to the frame?...and also the fork end gap was around 105mm in wheel fitted condition.Can I equip 5 or 6 speed gear set in my mtb? if yes can I also mount disc brake?
The derailer is sort of the easy part. Your frame could take a claw style derailer like this:
Or you get one of these and have a lot more options:
120mm is the minimum rear spacing for derailer multi-speed rear hubs, so you would probably need to spread (bend) the frame.
You'll also need a new rear wheel, chain, and freewheel. Your cranks will probably not give workable chainline with a multispeed freewheel as they are now, which usually means toying with the BB spindle length, which is a pain on cottered cranks, and would probably also have you either removing the chain guard or finding a way of spacing it out.
