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Nice work!
I have used micro lapping film which does not go into the etching since it is Mylar which does move except in a plane.( Only bends along one axis.) I have .3 micron which takes all day...1 to 3 micron would be good.
I often use it for a very light etch to bring up the highlights of an etch. I also use it when I re-blue or black the etching or engraving.
Good job, I say!
~Richard
PS I would also suggest that the scales or nearby scales were partially to fault as the corrosion looks a lot like celluloid out-gassing called "cell rot."
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I'm glad to see you cleaned it up nicely!!! If you ever have to deal with it again, you might try using a pencil. The graphite from the pencil "lead" is a very fine polish that doesn't hurt the metal or markings but takes the rust off. I've used it on knives for years. I just color over the rust and then use the eraser to take it off.