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I did just that (I don't have a Dremmel but using a random orbiter sander as a bench grinder). It worked out well and is actually one of my best shavers now.

Always glad to learn! So, this would be from someone dropping it or hitting it against something?

What's the cut out shape near the heel of the blade? I've heard of Barber's notches but they are usually larger and near the toe of the blade I think.

This looks too uniform to be caused by rust...