did you ever use a coolant "treatment" to stop a leak? and if it's like that around the cylinders then I'd clean/replace the rad, the whole system is going to be gunked up...
I've seen that a number of times and it's likely from lack of changing fluid and from some sort of additive put in there at some point in the past. I'd just clean it up and move on.
Getting it out of the cooling system is gonna be hard, you might try straight white vinegar and I suspect you will need a new water pump. I had similar sludge in a honda cx500, had to dig it out by hand in the water jackets, a very good reason to never use cooling stop leak in a bike unless it's an extreme emergency.