Timing Chain on 2002 Saturn LW200

My timing chain broke and the mechanic found that there were problems with the valves on the engine. I was debating whether or not I should even get the car fixed because it is not worth that much. The mechanic told me I should replace the valves and the timing chain and then it would be like I was driving a car with a new engine. After getting the car fixed at a hefty price ($2700), I found that it was leaking oil. I took the car back into the shop and the mechanic said that some of the O-rings are bad and it would cost another $3000 to fix the problem. Does this seem right to you? The dealership by my house says that if they went in to my car to replace my timing chain and they found that there were problems with the valves, that they would then recommend that I also get the engine replaced and that they wouldn't recommend just fixing the valves like my mechanic did. I'm also wondering, can a mechanic be able to tell if there's a problem with the O-rings when he's replacing the timing chain?

Asked by for the 2002 Saturn LW200
Some of those Saturn V6 engines had an oil cooler in the valley of the engine beneath the intake manifold that leaked allowing oil and water to mix, on these engines it was more economical to replace the engine for this leak.
1 more answer
What o-rings are they talking about?
The dealership information is correct, it isn't worth fixing if for the same price, or a marginal difference you can get a new/rebuilt engine.
You really should pose the question to the mechanic as to why he didn't see the oil leak before. When you perform a big job like this, you should perform an inspection and see what else is needed at the time, and then you can determine if it is all worth fixing or not.