This is the leak from the nut inside the cavity just under the exhaust header.
I've read several posts where folks have just removed the nut, cleaned things up and reinstalled with some RTV to fix it.  

Is that nut on a stud so there's no need to hold the other end of a bolt up top?  I put a wrench on it and feels tight so wanted to ask before putting any more torque on it.
Is this related to the head plug leak?  My searching/reading on the forum tells me "no", which would be great.
I did come across one post where it was stated that it could be the front left bolt that holds the chrome cover on the motor and I have had that sucker off in the past to access the spark plug so I'll prob'ly check that one.

I didn't have this until I did the Versy CCT which seems strange since I didn't touch the top of the motor and haven't put but a hundred miles or so on the bike since then.  BTW, I currently have just over 10K miles on it if that helps.
I first noticed a little smoking from the cylinder when warming up the bike to ride home from work and then found the oil.

   

Mine leaked there too. I took off the nut (it's on a stud so you don't have to hold the other end) cleaned it up, rtv'ed it and tightened it up. It leaked again shorty thereafter. Did it again with high heat rtv (copper) and added a lock washer. Now I snug it up every 400-500 miles and it hasn't leaked in 7000 miles. Just don't over-tighten it, if you strip the stud you will have to pull the head to fix it. Use a box end wrench no more than 6" long and tighten it till it hurts your hand and it should be fine. NO BREAKER BARS or long extensions for more leverage!

cheapnewb24 wrote on 02/14/16 at 17:54:53:


Relevant....maybe....in a "Don't do what I did" sort of way.

The proper nut is a flanged nut, with a smooth (not serrated) bottom to spread the load onto the aluminum head - don't use a nut with a serrated  bottom or any lock washer, as it will chew away at the aluminum and make it hard to seal.  The factory part is silver on the engines with silver cylinders, and a black oxide finish on the bikes with a black cylinder.  I doubt if color really makes much of a difference, as the nuts are well hidden.

Clean the stud, cylinder and nut if they are oily, then put a small dab of sealer on the flange and the stud before installing the nut.

Blue locktite is definitely useful on the Savage, and using it on this stud wouldn't hurt a thing....however the sealant will do the same thing.

The only downside of using sealant - is that you cannot ever "check" the bolt for tightness....or you will ruin the seal.  You will have to remove it, clean it up, and "re-seal" it.  The factory doesn't use sealer in this location, as the head gasket is not supposed to weep any oil....however it seems that many years and many miles seems to make the bike a bit leaky.

I'm having a very similar issue. I just changed the petcock to gravity and the oil to Rotella T5 15W40. Is this the same problem? Maybe because I switched oils? Thoughts?

Changing oil brands doesn't cause leaks.

IF that is on the left front side of the engine....it could be the head plug, or the failure of the sealant between the head and head cover.

You need to clean, run the engine....and look to see where the oil leak originates.

The nut we're out in talking about is basically on a head bolt,it only needs to be torqued to 20 ft/lbs .

The four main head bolts are sealed with copper washers .Can anyone spare a penny?( old ones are95% pure copper5%zinc, before mid1982 after that they are junk-97.5% zinc 2.5%copper ) Sand both sides of one of them old puppies smooth, drill a hole, anneal, apply-20ft/lbs torque- BINGO!