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This is a video showing how to make Tormach TTS-style tool holders using a CNC-converted Grizzly Super X3 Mill/Drill as a lathe. The holders are made from 1-1/2" diameter drill rod (silver steel), and cost about $5 each. Part 1 covers the basic setup and cutting the 3/4" shank; then turning the blank over and cutting the other end to make a perfectly concentric tool holder.
Part 2 covers the drilling of the hole for the cutting tool.