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rustproofing from the back end of the camshaft 200 1988

hi folks,

Could you please enlighten me - what am I looking at, and what my options are.
I have an 88 245 wagon with unknown history and mileage. Came with fairly loud valve rattle that wasn't significantly improved after a visit to a shop a year ago.
Drove it from Fremont to San Diego last Sunday without any issues.
Today, my son called me and reported a profuse engine oil leak - I came over, and I could see that, when the engine was running, oil was squirting out from the back of the head towards the firewall. I don't know if the back of the camshaft was supposed to be sealed - I see it rotating.
Also, at the present state, I'd call the rattle a knock - but I don't know whether it comes from the top or the bottom of the engine. Oil pressure light is off.

So... is it something that a quick seal job would fix?
Or, should I take up Memorial Day half-off at Pick and Pull, and procure myself another B230 - or go up to 234?

Thanks from San Diego,

Peter






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