What were you cutting with? Dovetail cutter in a milling machine? Hacksaw? You started cutting 3/64" deep, then moved the sight back 1/8", is that correct? You should have plenty of wall thickness left on that .32 cal x 3/4" barrel after a 3/64" deep cut. I'd keep any welder away from it. Just make a dovetail that deep, file/mill out a blank for it, draw file it to match the barrel contour and it should be almost invisible after browning.
Good luck
Ted K