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I've acquired a new gizmo for the shop in the form of a UnitTool C-frame punch.
Pictures
It's a small, heavy C-frame that's equipped with a punch n' die set.
I place it in my 20T hydraulic press, then put some metal inside..
After pumping up some pressure there's a BANG, and out somes the 1/8" flat stock with a nice "obround" hole punched in it.
No drilling. No chips.
I currently have just the 1/2x1 obround die - great for making slots. Try that on a drill press (you'll probably drill two 1/2" holes next to each other, then die-grind the center out - but it's hard to get everything lined up just so like this does it)