This is after I installed the P38 engine (used with 112k miles). Did a compression test which looked very good. Left the head gaskets, but did all the other gaskets including valley and valve cover. After about 1,000 miles I see drops of oil on all of these four corners. Oil loss is not that dramatic (half a quart after 3,000 miles). Valve cover gaskets do not leak, they are absolutely dry. I rule out the head gaskets since cylinders have good compression. Is it possible that the valley gasket leaks at the corners (and yes, I added silicon at the corners the way it is instructed, maybe not enough?).

 

The oil system pumps oil up up to the rocker shafts through a passage in the block to a passage in the head with a small hole in the HG. Certainly possible it is leaking from that sealing surface, I have seen it before. I would not worry about it too much. BTW, any time I am down as far as the intake gasket I always do the HG if they have not been done recently because the only thing requiring removal other than the heads themselves (and the rocker arms) is the exhaust manifolds and they come off really fast.

 

Are you certain that is engine oil? It looks a little 'red-ish' in that photo.

 

​​​​​​Right, totally looks like trans fluid. Maybe check the trans cooler hose connector.

 

It's on top of the block at all four corners. Trans cooler lines run below the oil pan. How would that get up there?

 

The cooler is up high in front of the radiator, and the fan can blow this stuff all over.

 

I see no fluid on other parts. Only on those 4 corners. And the smell is definitely engine oil.

 

It's just a bit weird for engine oil to be red. Did you take off the top fan cover and checked if the trans cooler isn't leaking?

 

While you are tracking down that trans cooler better check the blinker fluid.

 

Yeah, true, mine run out the other day and engine started knocking...