Here is the end result. Its not perfect but its part of the wood's character.
Some will disagree but I think its good enough for a norinco plinking 22lr
Mine came chipped in the tang area right out of the box. Minor chips like yours shows (not the major break). Since seeing your issue, I have removed some wood behind the bolt so that it can't ever contact the stock. How did you fix the elongated screw hole?
M