I have worked on these K engines a bit over the years, mostly in the Rover 200 and 25 series but its the same 1.4 used in the 400 and 45 cars. What year s this engine?
Leaks are very common in these engines due to their sandwich design using long through bolts and wet liners, some early versions had huge liner and head gasket problems but even with the changes implemented over the years they all still had leakage issues.
Rover used a different kind of thermostat in the K engine that is pressure activated not temperature to reduce thermal shock, never replace the thermostat with the conventional type.
You really need to do a system pressure test on this engine, the head and liner cooling ports can leak into the cylinder without going directly into the oil.
A litre every month should be easy enough to find.
If you cannot pressure test the system, replace the cap and put a 250ml bottle of Holts in the radiator.
Subaru re bottles this product in 150ml bottles and calls it Subaru cooling system sealer, it is available at any Subaru dealer, buy and use 2 of the 150ml size.
http://www.stahlgruber.de/Kataloge/chemie/index.php?sb=13352