M103 still burning oil...Need advice

[ps2cho]

1987 260E. Car has about 90k miles on it.

So 2 weeks ago I checked my oil level and it had not moved since I replaced my valve stem seals...Success for 2 weeks! I thought I had it solved...
Then today the oil light came on and there have been no drips under the car.

This engine's oil has seldom been changed at all throughout its life so I think the problems have caught up.

Compression is 190psi all cylinders, but I have 20-30% leak between each cylinder and there is a lot of escaping pressure I can hear through the timing chain area.

I am running Penzoil 20-50.

How can I know if its the rings? At this point the best idea may be to get a low miles 3.0L motor, (I'll rebuild the head) pull mine and start from scratch. I have a garage to do this.

Any thoughts or advice? The car visually is great and the transmission shifts amazing. Its just STILL burning oil.