That isn't gearcase oil. If it was, it would be milky white. As stevenj has stated, it's unburned two stroke oil, carbon and water. As far as the holes go, you want to take a good high powered nozzle on your garden hose and blast them clean. If water doesn't drain out of those freely, then you'll get water setting in there, which will freeze up and bust your lower unit housing over the winter months. So, make sure those drain holes all stay clean and all water is drained out before you winterize your motor.
read the Top Secret Files at the beginning of the forums...a.decarb procedure might be in order
Thanks. I will make sure they are cleaned out. Does the amount of fluid look excessive to you? The motor sat for two years and all I did was put new gas in it cranked it over with a few squirts of starting fluid. It ran for only a few minutes. Total amout of fluid leeked is what you see in the photo plus about ten drops on the ground.
Ahhh you see, this is where the truth is in the details, you made no mention of it sitting for 2 years previously. Had I just run my motor for 3 minutes and saw that much crud coming out of it I would not be pleased. It's important to make sure you give as much info up front as possible.