Is this sign of a faulty cam cover gasket?

Never seems to get any worse. There is oil around the upper part of the plugs as well. Car runs fine with no engine problems.

91 Mk1 1.6

Merry Christmas! 

 

It certainly looks that way, but it is an easy thing to fix with a new gasket. You need to make sure that you put a little sillicon sealant in each corner of the joints before fitting the new gasket

 Check the PCV valve isn’t faulty; this is the red/black fitting running from the cam cover to the inlet manifold. Its a 1-way valve. Can be cleaned with petrol etc., or replaced for a few pounds; it is intended to be a standard service replacement item.
 
The main “leak” appears to be from the oil cap; oil blow-by. 

Thanks SAZ9961, checked the PCV valve this morning - its fine, you can blow through it one way but not the other. It doesnt seem to locate back into the cam cover, is it just a push fit or am I missing something?

Checked oil cap and that isnt damaged or cracked etc so I dont think oil could be coming back out that way.

Next step cam cover gasket replacement?

Might possibly be CAS O-Ring as well. Oil showing along spark plugs, have you checked them to see if oily?