Advice on restoring Blue Wonder 7/8"

[Loewenherz]

I am a newbie to straight razor shaving, with less than a month of (thus far positive) experience.

I have been contemplating buying a hone, and today I asked my father for advice, as he knows a little about honing (he builds wooden boats, and has honed a few planes and chisels). We discussed what I would be honing (of course), and when I told him, he mentioned that he had a razor which he got from his father, and that his father had got from his father. I asked him about it and he said he didn't want it and that I could have it.

When he showed it to me, I was pleasantly surprised to see that it was a Blue Wonder 7/8" in what looks to be quite nice condition. Needless to say, I'd like to keep it and restore it to shave ready condition, but I'm not sure exactly what is necessary to achieve this.

The worst problem appears to be a small chip in the cutting edge. I have attached some photos below, in which the chip is evident.

There are a couple of small rust spots on the blade, and a little bit of rust around the pivot, which made it slightly stiff to open. I put a small drop of light machine oil on that and it has loosened up nicely. However, a little rust is still evident on the tang and around the pivot.

There is also a tiny crack in one of the ivory scales, but that doesn't bother me greatly.

I am just wondering how much honing would be necessary to remove the chip in the blade, and whether a newbie would be likely to do a decent job of it. Also, I'm wondering whether it would be worth removing the blade so that I can clean up the small amount of rust from around the pivot.

Any advice would be greatly appreciated.