Laminated steel barrels are a process that includes twist and damascus variants. They aren't inherently dangerous as many believe. But, like all guns, they must be proofed for the type of powder that will be used. In addition to containing the correct powder, the shells used must be the correct length for the chambering of the gun, and must contain the correct type of shot.
New guns are still available, constructed with damascus barrels. And, they are typically very fine guns, indeed. However, due to the labor intensive nature of barrel making by any laminated technique, they are enormously expensive.
The poor reputation attributed to damascus barrels is a result of two factors:
- Most of the examples that are commonly found in this day and age are 80+ years old. Many of them well over 100 years old. And, they have often been subjected to less than ideal conditions at some time in their long existences. Also, they are sometimes loaded with shells containing nitro (smokeless) powders. Combining corroded damascus barrels with over pressure nitro shells can have disastrous results for both gun and shooter.
- Secondly, the bi-metal (iron and steel) nature of laminated barrel construction is more prone to corrosion. For this reason, they must be well cared for throughout their lifespans and they should never be subjected to pressures greater than those for which they were designed.
Your gun shows readily apparent signs of corrosion, so I'd suggest you're absolutely right - it shouldn't be fired, even with black powder shells (unless proof tested by a competent proof house).
