Lowell,
I think its a matter of how much as to whether or not it's a safe thing to do. The steel used in damascus is very soft and ductile as is the iron.

Teague works in the UK environment of keeping a gun 'in proof'. This isn't the first gun with a bulge that needed fixing. I figure they are very well experienced in this kind of issue. If they couldn't fix it and keep it in proof, they'll say so. Neither you or I can do that from our armchairs in front of our respective computers.