I can't imagine that bike has an overfilled crankcase and a crankcase vent tube running up into the airbox somewhere. That would be way too street-bike nerdy for a dirt bike.
You've got to mean that you have fuel coming out of the carb overflow. Premix sure, but with fuel in it. Are you seeing an oil slick on the ground? Maybe there is so much premix flowing out that after the gas dries up it still leaves a glaze of oil on the ground.
Bottom line: You probably have fuel entering the carb when it's not suppossed to. Check the whole system from the petcock to the fuel inlet needle and seat to the float level.
The petcock will have an old dried up rubber washer thingy inside it. Search ebay for "fuel petcock gasket" and get a new one. There's a guy up in Canada that stocks tons of them. I wish I knew of somebody closer.
The fuel inlet needle and seat can be checked by taking the float bowl off, holding the carb upright, then blowing on a newly installed (not nasty tasting!) length of fuel line. When you lightly (very lightly, no harder that if they were floating in a bowl of fuel) push the floats up toward the carb body the airflow should be cut off with none seeping through. Likely issues include not just the needle/seat contact area, but also a rubber o-ring around the whole seat where it fits into the carb body. After 20 some years that o-ring will harden and pass gas, just like.... well nevermind.
There's a quick check to see if your float level is okay. The float should just begin to compress the needle spring when the float arms are parallel with the float bowl surface. If you have to push the floats up really high to get the needle and seat to seal, then you will have your cause of fuel coming out the overflow righ there. Just bend the adjustment tab to bring the closing point back where the float arms are parallel with the float bowl surface.
If that doesn't cover it, then throw it all out and buy an Elsinore.
Enjoy, Jon
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