One would need to exam the gun in person, however, if the bulge is minimal and there is no visible damage other then the bulge....using a draw file specifically made for this task, file it out, I have yet to see a bulge affect accuracy, not that I would suggest that you put a bulge in you match grade guns, but for this type of action I do not think there is a real problem....I have seen this and repaired dozens in my shop over the past 30+ years....while there is no way short of relining the barrel to repair the inside, I would in my shop test fire the gun before I would make the call as to being safe or not....again however you need to have a gunsmith check it out in person...just did a cowboy action shooters lever 38/357 as it bulged about 3" from muzzle....gun works great and in a CB action type shoot which is done at up to 100 yards, it still shoots straight. Hope this is of some help
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