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If your mechanic can't even tell whether it's blowing oil because of a bad turbo or rings (which likely won't make any noise if they are bad, BTW), find someone else NOW. It's pretty easy to tell. A bad turbo will dump oil into the intake. A clogged PCV valve will too if you're really lucky, since it only costs about $2 to replace. Bad rings will blow a lot of exhaust into the crankcase.
You should also check out the turbo. Take off the intake piping so you can reach the impeller, and wiggle it around. A very slight amount of back and forth/side to side play is okay (the bearings fill up with pressurized oil when the car is running so it's normal for them to wobble slightly with the engine off), but if there are any scrape marks inside or if impeller moves enough to touch the housing, it's toast.
Structural rust on a unibody car is never good. I don't know what safety inspections are like up there but you might want to find out if you could even get it to pass before putting any money into it.
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