Trepanning will work on the SB. Slowest speed possible, ie 5-12 rpm max in back gear and largest spindle pulley. This will keep cut surface speed below 150 feet per min. which is a good max guideline with HSS. Grind the tool as a narrow parting tool with 2-5 deg clearance each side and on the front. On the inside-side, grind slope on the tool bottom toward centre to clear the slot wall. On the outside side, grind slope on the tool also bottom toward centre to clear the slot wall. Top rake about 5 deg front high back low as usual. Use tool sharp and at exact centre height, with lots of oil.
KBC Tools have trepanning tools on their website for hints at the shape to grind HSS to.
I have done similar jobs on my SB 9B.
Good luck, JD also in Canada (near Toronto-where are you Doug)