Looks like and electric pencil job. If not too deep I would have it polished out and recolored or browned with barrel browner and rubbed down to give it a used look. I do it alot with old tools that are rusted/pitted and it looks more natural than a bright surface. My buddy just did it on a 76 Winchester that someone had taken sandpaper to and it looks great with the "worn" brown patina.
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