Advice on 1992 4x4 22-RE maintenance....

Hey all,

I have a pretty well preserved 1992 Black 4x4 Compact cab 22-RE with 160k miles on it. I took it to a very well-known and well-respected local Toyota mechanic here in the the North Bay for a general inspection and he came up with the following main issues, amongst some other small ones:

Leakdown:
1-3: 15%
4: 12%, blown head gasket
Plugs show sign of burning oil
Little coolant seep from squeeze clamps
Belts/hoses OK
Radiator OK
Coolant plug seeping on pass side
Possible Timing Chain noise heard at idle (maybe resonating thru exhaust down tube)

Clutch slips bad
Fan clutch loud, possibly frozen

His impression:
Either drive it until it "dies", or fix. Do not recommend pulling apart motor unless ready to replace entire engine as back up plan, due to burning oil and clutch.

Right now, the cost for doing a whole engine rebuild through him is about $10k start to finish.

Any thoughts? We had a similar scenario in our 1991, for which my girlfriend just had him do the full engine replacement, and it has been running great.

Any thoughts on whether to go full send and fork the cash for a big engine swap, or perhaps have him pull apart and try to fix the small stuff? Just looking for some opinions to help me make a decision :)