If you can get some 12L14, or 1137, or 4140 to try this out on, you'd be a long ways ahead.
12L14 is a leaded, free machining mild steel. It cuts very nearly like brass, and is easy on tooling. It does about everything well except weld. Can still be brazed and silver soldered, though.
1137 is pretty commonly used for rimfire and black powder barrels. 4140 or similar, is common for centerfire barrels.
All are fairly well available, whether from a stockist locally, or by mail order in short chunks.
I'd think that you are pushing the upper end of sizes for anything but very shallow depth flutes with the 5/16, or 3/8 diameter cutters.
Cheers
Trev