My head gasket seems to be leaking oil from the front area near the water pump which was replaced last year. The front does not look very oily, the stains look more like the black sealant used to seal the joint between the water pump and the block. The plastic drip tray below the engine seems to have a thin layer of oil with dust and grit soaked in. My indept. technician says that it would cost me A$1200 for the gasket job. The valves job together with the gasket would cost A$1800. Does this sound alright? Do I also have to change the timing chain and guides while doing this work? The car has gone 193000kms.

1994 Euro C180 auto Elegance :p

To start with I wouldn't spend that much money for oil seapage!
I would clean the area with a de-greaser & wait to see if there is a leak that would make it all the way to the floor.
Many times on that engine (M111) the fastening bolts at the front of the head to the front cover work loose, you might try tightening them first. Of course the valve cover has to be removed to check those bolts.

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