Kutter, Jon thanks for the feedback. Your comments make good sense. The wall thickness of the area having the crater is 0.136" which allows some room to work. But, looking at both barrels again using different lighting revealed another issue that worries me even more:

From this pic it's easy to see corrosion following the twist weld seams consuming roughly 50% of the length of both barrels. The bores already measure 0.005" over standard, 0.032" wall thickness 12" up from the breech so additional work to clean things up is a bad idea. Beside that, who knows how much of each weld seam is eaten away by the corrosion? How deep does it go? This barrel set looks good on the outside but inside is a scary sight. These barrels are unsafe, attempting to reclaim them will serve only to make them even more dangerous IMO. So, guys this is where I draw the line. This old hammer gun has undoubtedly earned its retirement and deserves a peaceful rest hanging over a mantle.
Hank