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Timing belt tossed by bad tensioner 900

My 97 960 had the tenisoner pully freeze up and toss the timing belt {new belt at 67k now has 82k} I was returning a movie to blockbuster and the car was idling when it went.I replaced the belt, tensioner ,idler pully had the car put back together and we had no compression . Now my regular mechanic has called a volvo specialist and his prices are obsene.He wants 2300.00 to fix the head but says it could go as high as 3300.00 if the head can not be machined. He says I should replace the engine with one he has with 86k for 2600.00 I smell a rat. I know I can get a new gasket set and 24 new valves from FCP Groton for 650.00 . -SO MY BIG QUESTION IS. Can my very good but not a volvo specialist mechanic do this repair? It is just a inline 6 thats easy to get to. HELP!



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