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If it's an aluminum spool, regular high speed steel (HSS) bits would be fine. Would be nice to use a drill press (lowest speed setting if set up for drilling wood) with the workpiece set up in a vise, but you could get away with a regular power drill. Slow and steady.
You could paint it with automotive paint and a pressurized sprayer. Rattle can spray could work, but likely wouldn't hold up very long.
A body shop may be willing to paint it for you? Maybe you "know a guy"?
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