If the point sits flush with the radius of the base when fully extended, this is probably a gauge for setting the depth of cut for a line boring bar.
Many line boring bars use tool bits that are manually set by moving the tool bit in the slot or hole in the bar. This tool would bear against the tip of the bit, with the base fitting the OD of the bar. By adding the the reading on the gauge to half the diameter of the bar, you get the radius of the cut, or half the diameter. For this to work, the radius of the base must be the same as the radius of the bar, or half it's diameter.