Since we have owned this car, it has been once a victim of "over heating".
The radiator used to lessen the water level at that time. As a first step a number of radiator caps were tried and then the radiator itself was changed, in fact 2 or 3 were changed in quick succession as the issue was not getting solved.
There were no vissible traces of water escaping from the head gasket. However, the engine head was removed to find out the issue. When the head was removed it was discovered that the were rust is the water channels around the cylinder areas and the water was actually escaping from the small pores developed in to the water circulating channels due to the rust. Once those pores were filled the over heating and water loss issue was solved. Since then the engine was performing at its peak.
Now when the mechanic inspected the engine for the oil loss issue there were deposits of dried oil around the valves of the number 3 cylinder (from the distributor side) .
Apart from that the mechanic told us that there is some sound coming out from the engine too.
He told us that this can be due the splayed cylinder no. 3 or due to the loosen connecting rod with the crank shaft or the crankshaft may have a wobbly connection at one end.
Apart from that the rust which was once there in the water channels inside the block makes me worry too.
Now please suggest what should I do.....
The block is available around 35k and if go for the repair of these items it may cost around 20k.