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1982 Evinrude 60 hp leaking black oil.... and grey sludge

So my boat has been sitting for almost a year and has not been in water... but have been going out in the yard and running it from time to time... and just today i noticed this greyish sludge type oil coming out of the prop and from the ports on the lower unit. Can anyone give me a clue of what it could be.... thanks. Here are some pics i took....
 

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The oil mixed with water.--------At idle some fuel / air mixture goes right thru the motor, is never compressed and burned in the cylinder !
 
Go to YOU-TUBE and search outboard tutorial videos --------Some very good , some not so good , and some that are very entertaining as well.
 
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