A compression test will help to determine the overall health of the engine when related to piston ring seal. Oil consumption can be related to that, or from the valves/seals in the heads. Since it is so easy, go ahead and do the test. Remove all the plugs first, block the T/B open, and crank the "tested" cylinder 3-4 times until there is no additional movement of the needle on the gauge.
If the reading is consistent between cylinders, (w/i 10% of each other) and depending on the overall pressure,... then the bottom "checks out".
W/A engine using oil, you're probably gonna have a low cylinder(s).
Problem is, The test can point to leaking upper or lower causes (or both).
Go to your base auto hobby shop and see if they have an engine leak down tester. If they do, see if one of the old guys running the place knows how to use it. It is a far better "test" to find out what is really the problem in the engine. W/I, you'll be able to pressurize each cylinder, and listen to the air escape either into the crankcase, or past the valves into the intake manifold
Regardless, 1000.00 could fix either cause, but it'll be a budget fix at best.
i.e. You'll be able to pull the heads and pay a machine shop to rebuild them to new specs, and re install the heads, W/ alot of money to spare, and....
You may be able to tear the bottom down for a basic refresh, to include a hone, and re-ring. Add new bearing,s a timing chain, oil pump, and pick up tube, w. all the requisite gaskets, and put it all back together.
I know that I could do it,..question is...can you? While not hard,...it does require a certain ethic, a space to do it, and leave it while it is happening, and the right tools. If you don't have access to any of these things,..I'd make sure I did before I ever removed the first spark plug.