Dave, the toolholder was made from 12 mm x 50mm steel bar crudely cut to shape by chain drilling and then filing.
The 6 mm hole for the tool was drilled using a drill in the lathe chuck once the toolholder was champed to the base. This ensure that the hole is on the lathe axis.
The tool was a piece of 6 mm silver steel shaped with a file and then hardened and tempered.
Cutting the slot in the aluminium base was achieve by mounting the the base on an angle plate attached to the cross slide and then milling the slot using a 12 mm end mill.
Lost foam casting does produce a small amount of smoke and flame when the aluminium is poured. However, the amount of smoke and flame is small. Most of the polystyrene melts and goes into the sand and does not burn. I think it would pose little nuisance to neighbours.
I hope this information is useful.
Mike