What is that plug your arrow is pointing at? or it it a head bolt? If a head bolt what kind of bolts are you using? there are no marks on the head of the bolt which is strange. The pic is so close up it's a little confusing to me . . . what part of the engine is that exactly?
IMO there are a few possibilities IMO.
1st - Make sure that coolant isn't running back from the heater core, thermo housing, rad hose, intake fitting, etc and dripping off your heater hose or running down the block. It could be coming from something simple.
2nd - that plug in the picture looks unusual to me. I am used to seeing a tapered pipe plug used to seal up the holes in the sides of the heads. That looks like a gasketed plug of some type which typically would not seal on the side of a cylinder head. But again, I am a little confused by your picture. If its a head bolt, were the heads angle milled? If so maybe the threads aren't sealed up and the bolt shoulder isn't squared up to the casting.
3rd - if the engine is building up too much pressure it is often from a leaking head gasket.
4th - you mentioned in another post that you had your factory castings CNC ported, you had them checked for cracks and the like, right? A crack in the casting could weep like you are describing.
Sounds like you have a really cool combo going - hope you can get the bugs worked out quickly . . .
E85 racer and E85 carb builder
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68 Camaro, E85 powered 427" small block. 9.96 @ 133 MPH, 1.319 sixty foot on motor. 5.92 eighth @ 116 with a 1.42 sixty breaking beams with back tire on the bottle