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I would try to work what you have a little before going off, on either a rebuild, which you will have to pull the engine ,and the pistons will have to come out the top by the way,or a salvaged engine.
My engine has used oil more than I would like in the past and there are a number of things I have tried to do to help it stop. First get a new gasket for your oil filler cap.
Try the Auto R-X treatment-do it two times-just to make sure-try the seafoam treatment as well. If the rings are stuck this will help loosen them up-if the rings are shot nothing is going to help.
You should also check and see if the oil breather box is stopped up or is leaking, that can cause some oil depleation. I know you stated that the #5 cyl was down on compression it may be the rings are shot then nothing but a rebuild will do ,or go for a crap shoot and get a junkyard engine for a transplant.
If you can find one you can trust it's better to do that-if I had mine out and where I could work on her-I'd tair her down and do the overbore with new pistons and all-I don't know if these engines have replaceable liners or not.
I have wondered for some time if one might have luck taking PB blaster that comes in the gallon container, mixing half and half with marvel mistery oil and pouring that mixture down the top through the spark hole and let setting for a while, then turn over by hand and letting sit some more ,and keep doing that if it would loosen stuck rings,I'm just noodleing here and trying to bring up points.
Good Luck with what ever you decide
Poolman
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