Looks to me like it was intended as a PCB drill.
Also appears, like there are a couple of brush screws, there should be one either side. As such, it not a synchronous speed drill, so I'd expect a very high rpm, possibly in excess of 10,000 rpm.
Looks to be two speed, so maybe it's a simple 1/2 wave rectifier or something.
Have a look on ebay or similar for PCB carbide drill bits, normally offered in boxes of 10 in steps of 0.1mm
i.e. 1.1-2mm, or 2.1-3.0mm
I've bought cheap Chinese ones in stepped sizes and they seem to work fine.
Bill