In the ‘horizontal’ ones the pinion is indeed a plain spur and drives a gear on the leadscrew – I’m fairly sure the ‘vertical’ ones have a bevel pinion that meshes with a large bevel gear of the leadscrew.
I don’t want to get into trouble with pics or links, but if you search ‘AL310S Milling’ Ebay will throw up a pic showing the array of bits for the ‘vertical’ models, you will see the pinion and the larger bronzy-lookin’-cone that is the gear – it only comes with the ‘dangly’ kit.