Gents and ladies

Had this little girl kicking in the box for a little while. I honed it up today and the wife fell in love with it.

The scales are broken at the bottom pin. The etching is deep and in good condition. Pitting on various places but not deep. There is some active rust at the point but nothing major. The blade is so small which is giving me some concern.

Since this will be my first "restore" I am looking for some advice.

A lot of restores seem to revolve around the greaseless compound to bring it back up to shiny. I think that might be too harsh.

Hand sanding is an option (which everyone says is a huge effort).

The scales will be replaced with some nice ebony I have kicking around for pen turning. The blade is literally that shallow.

So how would you proceed?

Thanks

Dave