Hi Cotton
The oil is reused.
As long as the oil level is not too high (ie above midway on the stick)...the vapour and mist from those breathers goes up to a separator box behind the steering head where the oil settles out and drains back to the sump (metal tube going into the back of your sump by the drain plug) meanwhile other vapours are sucked into the airbox and burnt.
If the oil level is too high oil gets thrashed into a heavy mist which overwhelms the separator box and oil then drains into the airbox (as well as the sump) and gums up the throttle bodies