In my experience, JB weld and other mixable epoxies are pretty hard. But it depends alot on how it is mixed as well as the ratio. Personally, I were trying a low cost method, I would drill it out, then hone in with a brake honer, then turn a brass insert. A lot of steps, no doubt, but you would also have a piece of mind knowing it was done properly.
I suppose you could also fill it with TIGed material, then drill it, then hone it as well. That will probably cost as much as the JB weld method.
--Chris