Grinding is no issue. Hardening, may respond to quench, may not. The blank arbor is around 28-32 HRC as is, which is fairly hard for most applications. I suspect the material is equivalent to 1045-1060 grade mild steel. This should have enough carbon/manganese composition to respond to heat treatment. It's not the same alloy as used in a twist drill.
Edit: looking at the one I have, it has been heat treated. Again, I suspect the hardness is in the 28-32 HRC range. Maybe a tad higher. I wouldn't expect anything greater than 40 HRC in hardness. The product is ground all over and nice!
I found a reamer that will get you 1.100"dia for about 1.440"It might be just shy of 1.1". The #3 mt shank needs a little clean up. PM me if you want it and Ill get it in the mail
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