Re: Looking for ideas on how to repair this chip
It can be repaired, and trying to explain how (here) is going to be a bitch.
1st, you need a piece of walnut containing similar grain structure.
2nd, you need some shellack in raw (chip) form
Mix your shellack with some alkahmahol and wait for the chips to dissolve. It'll take a couple days.
You'll need a stain. American guns typically get finished in a reddish colored stain. How you get to the right tone is a matter of creativity. I make my own stain by running walnut shells through a coffee grinder and soaking them in more alkamahol.
A little coffee bean doesn't hurt either if you need it darker. Rust will help make it more red.
So, you make a patch and glue it in place, then sand/shape to fit. You have to be careful to match the grain as best you can.
Now you stain it. Once dry you take your shellack and get yourself a piece of felt wrapped in cotton T shirt. Wet your applicator in shellack, then dab it till it almost stops watermarking a piece of paper.
Put one drop of mineral oil on it. Now wear out your elbow doing the wax on/off thing. The oil lubricates the rubbing so that it comes out baby smooth.
This is how old school piano makers finish the wood. It's a biche and will really bring out the carpal tunnel!
Hope this helps. Good luck.
C.