The hole is cutting into the barrel???
WAY too far forward. Even if the gun doesn't blow up, you're still going to have major problems with the lock bolt head, sideplate, and lock panels. Big time problems. Plug the hole and move it back where it belongs. You'll come out way ahead.
While you're at it, cut that barrel and breechplug down! A 5/8" breechplug is L O N G. Especially for such a tiny barrel. This is the real source of your problem.
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OH! I guess you've got the lock inlet already, duh. Well, things could still be moved around, but you probably shouldn't attempt it. May be basically stuck with what you've got then. So forget what I said before, until you make your next gun, then remember it!