Just yesterday I made a dedicated tool post for holding a 3/8” boring bar for my 7x12 out of one lonely piece of (surface) rusted 2”x 2”x 1” thick steel flat bar I’ve had sitting around here forever (I knew I would find a use for it eventually). No idea what grade of steel, but cut/drilled pretty easily.
First, placed it in 4-jaw & faced off both sides .020” to get rid of surface rust & ensure both contact surfaces were flat (top/bottom). Then drilled the center hole for the mounting stud ….in my case .386” or letter “W”.
Swapped the 4-jaw for my 3-jaw to hold drill bit(s) (I know, not the right way to do it) & mounted the “new” tool post to compound. Once it was squared up with lathe axis & in correct position, tightened it down & drilled the hole for boring bar in 3 steps after center drilling - 5/32”, 9/32” & finally letter W. I was initially just going to simply advance the work into drill bit using the carriage hand wheel, but didn’t like how much stress/torque was being exerted on lead screw, so came up with this idea instead (see photo below): used my tailstock w/drill chuck (jaws fully retracted) placed against backside of block, tightened TS down & advanced the quill to push carriage/tool post into drill bit. Worked like a charm! Way easier on my little machine & with the drill chuck tight against work piece, it kept the work square & prevented it from wanting to rotate/twist. Only went about 3/8” - ½” at a time starting with 5/32 bit, then switch to next size, then final size. Took a little while, but ended up coming out perfect.
All that was needed now was to cut the relief slot (which I did with a hacksaw) & drill/tap three 10-32 holes for clamp screws. Bit of de-burring & good to go.
Certainly won’t win any “project of the month” awards, but it’s an easy, alternate option for you
Hope this helps!