ISTR this engine has wet liners, possible one of those is seeping at the gasket or cracked slightly?
Compression test next?, not as a small seepage will necessarily show up.
Does this engine have a water jacket/cooler round the oil filter housing?, that could be leaking, i seem to remember something like this on one or was that a water heater round a Diesel fuel filter?...you'll have to look my memory isn't getting any better..;)
I suppose cleaning the cooling system and refilling with clean water and running for a few days without anti freeze would be a sensible first step, if oil reappears which i suspect it will then you know you have a problem.
If it isn't the oil cooler at the filter (if fitted) then a full strip down might be on the cards, and it might be easier and cheaper to simply bung another engine in, if you can find one.
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