So what did they tell you? As I mentioned before, don't make a decision on the cars future until you have a firm diagnosis of the fault. We can only go so far in doing that in a forum, it really needs somebody with access to the car in order to touch and feel and smell and test.
If it comes to the crunch and the engine is "beyond economic repair", to use insurers phrasing, would you consider Magnet's suggestion of throwing lots of cheap oil at it as a way of keeping it running? You'd have to tolerate an oily driveway and ignore the environmental consequences, and of course even the cheapest oil is not really cheap.