Gm engineering is looking into this exact problem right now. The current info says to check the under side of the valve covers for problems with the breather baffling. It then says to run the engine with the valve covers off and note any pushrods with excessive oil shooting from them. Lifters have fixed some of them. We have had a few with carboned up and stuck pistons rings. Your noise problem sounds like a DOD lifter problem and could cause the oil consumption problem too.
There is also an oil consumption bulletin for nicked valve stems and oil getting by the seals requiring head replacement.
If they want to put lifters in it or teardown and inspect the engine thats ok but they might just tell you they need to monitor the oil consumption and wait for GM to release their magic fix.
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Nate
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71 Nova. "The Green Machine" April 11' PHR
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