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2001 rm125 leaking out of powervalve overflow

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I just got this bike 3 days ago it runs good start first kick but after I got done riding the was a little bit of gray stuff leaking out if the hose that come off the powervalve and it smelled like there was gas in it but it didn't leak a lot

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O-ring burned through, or cracked head, pull the head and check. Just went through this, bike had 195lbs of compression but had cracked head. Pay close attention to the coolant level, but I'd still take off the head and check general condition of things before catastrophic failure.

DSC03560_zps368316e6.jpg

Edited by JBFL
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Okay I will do that just to be safe I had a few people tell me it may just be the carb

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A whitesh gray color sometimes means water in oil. If you have a compression checker this might help, how about a picture of the spark plug?

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