You don't need to worry about doing drilling and tapping on a magnesium casting, unless your drill is totally blunt and ignites the stuff.
It depends a lot on the exact composition of the alloy. Magnesium with just 2% iron is non flammable,or maybe it was silicon, I can't remember right now and I don't have my notes here. It seems to be very difficult to get hold of. At least I cannot source it.
If you think you have a problem, I am casting the stuff! You should see the remote control set up that I have. If the argon atmosphere fails then I have somewhat bigger problems than you might have!
Before the engineering community comes down on me with much wrath. I might say that my casting setup is highly professional and is operated remotely. If anything did go wrong, then I am in a remote area free from housing or for that matter the melt is remote from myself! At least two people are present during a casting operation. So safety is absolutely paramount.
I would not recommend trying this for yourself, I still have not got a clean casting and I have put a lot of work into the set up. So much so that I can't give up now!
Andrew.