It does sound very much like a failed HG
Head gasket is about 2 hours work on a non turbo engine provided no studs shear.
The water system will need a very good flush due to both the age and the steel seal.
Head gasket sets are not expensive, Fit a new cam belt while it is off (and fan belts if old) New Tstat and check teh condition of the water hoses.
Never refit the cylinder head without getting it resurfaced, if it only needs the lightest of skims great but chances are it will need a reasonable cut
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