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Did you hand sand it? It looks quite scratchy to me, perhaps try a few sandpaper grits up to 2000 to get rid of the scratches. The scales look much better!

I think a bit more work will take both...

Very nice! Little polish on the blade to wipe away the rust, I think that's all it needs. What little patina there is, might just as well stay. I look forward to restoration pics!