It doesn't really matter about the hole if the spacer is going to be in the middle the hole can be off a little and you wouldn't see it. Just make the spacer wider than the block and sand the excess off after gluing it all together. If you glue it before drilling I doubt the brass would hold together anyway without a tang going through it and it would be easier to drill out small pieces than one big long one. Are you putting a threaded pommel on the end or are you going to pin the tang?
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