Not knowing that engine, will ask, wet sleeve, dry sleeve or parent block. Here is the first and easiest test I would make. Remove water pump belt, fill radiator to the very running over top. Start engine and rev it up and down while watching that coolant in radiator. If it moves, you have a combustion leak. Have to do this test in less than a minute as natural heating of the engine will of course move the coolant up and out of the full radiator.
If you get a raising of coolant or bubbles, next test to pin down problem is a leakage test. Compression test will tell very little if anything. I would take that old injection nozzle and make a fitting for an air hose. Remove all injection nozzles, get number one on exact top dead center. Apply air pressure with that test nozzle installed using regulated pressure so you can raise pressure gradually. Again watch in radiator for leakage. You will most likely have to mark front pulley or flywheel to get exact top dead on other cylinders as only the mate cylinder will match up with original tdc mark.
You will be able to compare any leakage past piston rings, valves etc . If a wet sleeve engine you may have a leak through a pin hole in sleeve. To pin that down you would need to back off valve adjustments so you leak test with piston at bottom of stroke.
I never like randomly taking a head off looking for leaks because once you get head off , you say, now what. I don't see anything. Trouble shooting is trouble some but on problem solving difficult situations, it is time well spent.
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