Very nicely done and a lot of thought went into your build. A bit surprised you didn't go with 3 phase which can give a bit smoother finish. I would look into putting a pump oiler in the gearbox, a number of 1340GT owners have installed them to get more even oil distribution for the gears.
On the coolant, I switched to KOOLRite soluble oils years ago, mostly for my horizontal bandsaw. Prior to that the sump would start to stink after a few months, with the KOOLRite it went for over a year w/o problems and a marked improvement in decreasing rust. I did find the the unpainted surfaces on my 1340GT would get surface rust very quickly, so would routinely wipe down the surfaces with oil. One concern that I would have with cutting oil with titanium is the risk of ignition/fire. I haven't machine Titanium, but coolant is pretty much required to draw the heat away, but I usually see recommendations for using water based soluble oils. The KOOLRite worked well, you also might check with David Best who had another water based coolant that he used and he thought highly of it, he does a lot of wok with SS 304. He also did extensive mods to his 1340GT.
It’s been several months since I took delivery of, and posted about my PM1340 lathe. It's time for an update since I’m nearing completion of what started as a straight forward VFD conversion project, and then took on a life of it’s own and led to a substantial customization of the stock PM1340...
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How to select metalworking coolants
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