Almost 30 years ago I had a M94 in .30 WCF rebored and chambered to .38-55 by Parker Ackley. It was a quality job and the rifle functioned perfectly. Obviously the cost then has no relation to today's prices.
For a traditional lever action rifle it is almost always less costly to rebore than to rebarrel from scratch. By the time the new .38-55 barrel is turned to the correct diameter, cut and crowned, has the notches cut for the barrel bands, is milled for the extractor prior and tapped for the sights -
then blued - the cost is well above the $150-$175 range.
One downside is that because you are dealing with a factory barrel the steel quality is lower than what you can get in a new barrel - you'd cringe if you knew how cheap factory LA barrels are.
When cutting and rifling the old barrel, hard spots can cause the cutters to tear the steel, marring a perfect bore. This happened in my case, a small tear in a groove about 3" back from the muzzle. While I know it is there, it has caused zero problems and the rifle is quite accurate.
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