The chip doesn't look too bad in the photo .. ? I think if the bulkhead covers it you'd still be OK. Although I guess if you have a spare piece anyhow then there's no harm in starting over.
Having drilled my share of pieces over the years, one thing I wish I had at my disposal was a drill press.
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-- Tony
My next hobby will be flooding my basement while repeatedly banging my head against a brick wall and tearing up $100 bills. Whee!
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