Given the expected demand for long blocks for a 31 year old Ranger, I'm surprised you found one, and wonder how long it sat on the shelf.
As noted, the intake manifold gasket is likely the source of the leakage. The intake on an 85 with EFI has a small coolant hose that connects to the intake, to pre-heat the intake manifold so fuel will burn better from cold start. The hose goes around the back of the head and connects to a Tee in one of the heater hoses.
The center, front-to-rear, of the intake manifold is the location where coolant needs sealing. I would lay the new gasket on the intake manifold and check that it will seal the opening or chamber that contains cooland. If the gasket is flipped, end for end, it may not work. Make sure it will contact all of the gasket surface, and that the intake gasket surface is clean, smooth, and dry. Personal choice, I would not use sealant unless there are problems with the gasket surface. A good gasket, compressed between two good surfaces, with even / level surfaces will seal.
If you must use sealant, only use a small amount, and spread it using a finger so the coating is very even and thin. If you use too much, when you tighten the bolts, it will slowly ooze out, perhaps inside, and lose tension as the sealant oozes. You end up with too little tension or torque on the manifold bolts, and it starts to leak coolant or air as it relaxes into position. Using plain gasket, no sealer, when you torque, you know it's torqued. If you use sealant, check torque a few hours after installation, and then a week later to make sure it hasn't lost tension over time.
tom