Word of encouragement
You may well find that if you can get a hole drilled in there and get a small diameter stud extractor/EZ out in there, that the bolt isn't very tight at all
I had a bolt that was rounded out in the last set of Manitous that I rebuilt
I drilled the head with a hand drill 'til I was able to crack it, this released the tension/compression (it was **** tight) then I was able to just wedge a screw driver in the hole and undo it, now it was pretty loose, didn't even need to cut slots for the screw driver just wedged it in...
I would guess that whoever cut this bolt probably rounded it out, the head has gone so it's not compressed against anything now, so you could already be at step two of my fork bodge odyssey!!! - Of course you have the added complication of it being down a hole, so I'm not underestimating your task
Another tip to test for steel-ness before you drill, get a sufficiently powerful magnet, stick a rod or bolt on the magnet and put that into the hole, if it wants to stick to the cut off bolt stump it's steel
- And certainly all that easing oil ain't gonna hurt and maybe a bit of heat? Man you are gonna beat that thing