At work ..We use magnetic seperators on grinders…on lathes swarf is generally settled out.in tank….if the chipconveror doesn't get it first…
If you do this think course..medium..magnetic…..other wise the trap will pack tight with swarf.."cemented" into solid lump by the finest particles….no fun draging that out…..
also beware magnetised fines may escape……all magnetic seperators I 've used , use AC electro magnets to prevent/reduce the magnetisation of these fines…. which would make your machine all furry..
have always found tights over suds return to tank work well for the fines…again in grinding…