TOPIC: leak part 2

I posted earlier in the JEGO forum and was told it was the drive shaft seal. One thing I noticed. it did not leak when in the down position. I tilted the motor up, still no leaks. As soon as I put the motor in the down position, big leak. Would it still be the drive shaft seal or something else along with the drive shaft seal? The leak is coming from the two small weep holes.

Welcome to the old omc leak page
My guess would be dirty old unburned fuel/oil mix. I've had bunches of these motors from 5-5 hp all the way up to 60hp and they all do the same thing. Never bothered anything but just a pain to keep your driveway clean. I usually just throw an old cake pan under the lower unit when done for the day. If you wipe it down you'll be good until next time.

Agreed. Oil there doesn't necessarily mean the lower is leaking. Those weep holes are there to drain out trapped water and sand from the inside of the motor tower. Unburned fuel and oil will always ooze from these holes after the engine has been used. Some engines more than others. have you verified that the goo isn't unburned 'slop' from the engine? Does the oil smell like gear oil? The gear oil in the lower unit has a distinct odor to it. You can pull the drain plug from the lower to see what the oil looks like. If milky - the seals are shot, or there is an other problem letting water into the LU. The unit can also be pressure tested to determine if it is leaking. If the unit hasn't been re-sealed in decades, it probably leaks.

Thanks for the info, I really appreciate it

Just to help you understand somewhat clearer I snapped this while I was changing my water cooling impeller. As you can see with the cover off all the open area that actually fills with water while your motor is in working. All that gunk that builds up in there also drains out after you take the boat out of the water.