You can find an illustrated article on the subject in The Gun Digest Book of Riflesmithing by Jack Mitchell. His method is to make the cut by extending the extractor collar groove to the desired location and cutting with a hacksaw. The bolt body is then bored to accept the shortened front piece and silver soldered in place. It's neat clean and invisable. Use appropriate heat sinks to protect the lugs.
The firing pin is cut and welded using v blocks.
Make sure, when reassembled, the spring doesn't kink and rub on the inside of the bolt and you're done. The most important, and most forgotten, step is to make and use heat sinks. Too large is just about right.
Last edited by Cary; 05/21/13 10:19 PM. Reason: spelling