If you're certain that your valves are leaking then it certainly is a problem.
With Dominator's, the engines are prone to the valve seats getting loose while hot. If you suspect this, you need to have new valve seats pressed in.
These engines are pretty solid and stand up to a lot of abuse but many have seen many miles, with little TLC and are starting to show their age.
However, they're simple engines. Easy to work on for a home mechanic.
I am going to be rebuilding my XR650L engine soon (same engine) and here is what I'm probably going to do. Mine burns/leaks a litre of oil every 100 miles. I bought it that way.
1.Head removed and completely stripped, cleaned and de-coked.
2.Valves replaced with new Stem seals and they will be lightly lapped in. (Kibblewhite Black diamond valves - Cheaper and better than OEM)
3.Bore honed and new rings fitted. Maybe an oversized piston to 101mm if the bore is Yet to be measured. Lots of companies make good value pistons and rings.
4.New camshaft and cam chain.
This will probably cost about £300-£400 in parts, gaskets and consumables.
It sounds expensive but is still cheaper than getting a GS serviced at a local dealer and your engine will be like new.
Parts are cheap in the USA. Even with shipping and tax, they're often half the price than getting them from a UK dealer.
1995 XR650L A Honda Motorcycle Parts
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Did some trips.
Rode some bikes.
Fix them for a living.
Can't say anymore.
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