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$7000 for an oil leak? V70-XC70 1996

My mechanic thinks my 96 V70 XC needs its engine pulled because it is leaking around the main engine seam, inside the turbo and around the timing belt. The other day I had oil on top of the engine for unknown reasons which may have to do with a cold PCV while driving (or failed oil cover gasket?). My main leak (worse because of recent synthetics?) makes an L shaped mark from the 9 in silver box low to the ground in the center of my car even with the front tires. It leaks at least 10 drips an hour now and was only 2 drips an hour before the oil on top of the engine incident. They have sprayed the engine and used dyes. I am in Alaska where my choice of mechanics is limited. My mechanic is a good guy, but I think he needs some advice from here. Basically he should try cleaning the flame trap? Any redesigns on PCV's for cold climates?

Thanks for any advice.






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