I used a reamer. That didn't open it at all so I used the same reamer with a .001" shim on one side made from a feeler gauge. That worked great. I think it was better than a boring bar which would be very difficult to center and easy to get the hole to big. The lapping compound might leave behind some grit, same with sandpaper.
With a 4 jaw chuck on the lathe, I’m reasonably sure that I could get the runout down to something that wouldn’t register on a .001” DDG. I’ll give it a try just to make sure I’m not talking through my hat. This is the link to the compound. It’s claim to fame is:
“ Prepared in powder form, to be mixed with oil as used.
Timesaver first acts as an abrasive, then the particles diminish to a polish, and finally to inert material.” The yellow label stuff refers to bronze, brass, Babbitt etc. I wondered about the remains getting forced into the pores of the oilite, but the suppler suggests otherwise.
www.newmantools.com