Hello.
Low compression can be caused by a number of reasons. Yes a blown head gasket would be one of them.
Other causes are the piston rings, bent/burned valves, worn cam shafts, bent rods, or even an excessive amount of fuel in the cylinders. You see, the gasoline washes off the oil off the cylinder walls and the rings lose compression.
However, if your technician has narrowed it down to the head gasket... A thousand dollars is a quite reasonable for the job. If the job gets done right. That means, remove engine components, remove the cylinder head (the complete top half of the engine).
Now, the head needs to be sent out to the machine shop. This is where it is pressure tested, cleaned, new valve seals are installed, and the head's mating surface is machined smooth and straight.
The technician needs to clean ALL part mating surfaces to a spotless shine. Also, all the parts should be cleaned nicely.
The cylinder head is then reinstalled, torqued in a precise manner, all components are reassembled, the fluids are refilled and the test run. A follow up appointment is good business practice.
Also, parts... Head gasket kit (all gaskets needed) head bolts, cleaners, materials, fluids, filters, plugs, thermostat....
Is the truck worth it? Only you can say that. What's the condition of the vehicle? Tires? Brakes? Interior? Exterior? on and on...
If you have any further questions... let me know.