I was pointed in the direction of Valve guide seals as there is lots of blue smoke when i fire the bike up initially. Like you say Studley, after speaking with a mechanic this morning he also suggested a top end refurb would be the way to go whilst carrying out the work. He also suggested that it may not be as straight forward as just changing the valve seals and the problem will be fixed but thats something that obviously wont be found out until work on the bike has commenced. He did mention a very rough figure of around £600ish but obviously he wont know the extent of the work until he has investigated. With that in mind, I dont have that amount of money to throw at the bike so Im leaning towards having a go at myself
Doing the valve stem seals made a huge reduction in the oil consumption on my Mk1. Have you done a compression test to check the piston rings aren't leaking a bit too?