In this case it would seem to be valve seat recession, there is no cheap fix as the head needs to be welded up and then cut so a new seat can be pressed in, then the guides need to be done, new valves (probably get away with exhausts only) cut (minimum 3 angle) and grind.
If you are bucks down, a serviceable set of 2nd hand heads is an option but measure the guide clearance (a set of k-lines can be fitted cheaply and will last almost as long as new guides) and then monitor them closely. Any heads manufacturer pre-1985 may suffer from seat recession when used with unleaded or low lead fuels - there seems to be no rhyme or reason, some will recede and some will not. I dose my fuel with a lead replacement - costs me about $2.20 per tank of fuel, I regard it as insurance and as a hedge putting off the evil date I have to fit hardened seats to the exhaust valves.