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M20B20 looking dead :(

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So, had some symptoms of a blown head gasket (never overheated btw) in my E30 320i, white smoke started occasionally pouring out the back and was rough on idle for the first minute or so sometimes... the car began drinking coolant, originally very slowly. The issue got worse and worse, to the point where I was seriously concerned at how much coolant the car was using (a 1 hour drive would see nearly 1 litre of water disappear out the exhaust pipe 😲). The minute it got this severe I sent it straight to the workshop for obvious reasons. The problem went from extremely minor and barely even noticeable, to totally chugging the coolant back, in about 3 weeks... so a very short time span which I believe is quite unusual.
I just got a ring from the workshop (who has plenty of BMW E30 experience) and immediately found the culprit to be cylinder #6, closest to the firewall. In his best knowledge this is an immediate indicator of a corroded block :( and therefore needing an engine replacement. It could also be a cracked head....

Does anyone have any experience with this, or any idea as to whether the engine could be rebuild-able with a donor block? Or is it likely easier to source a replacement motor? What could the cost look like for a new engine + fitment?

Appreciate any feedback.

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