The secret is to break the dill off the shank and then chuck it up close. I use the carbide shanks (but not all are carbide) to make gravers and slide rest tools. You can lengthen the drill as the hole gets deeper since the walls help support it (I am guessing as to why it works out).
I am very interested in the details of your procedure for turning the .018" dia. x .800" long shaft.
I'm having a lot of trouble with work piece deflection when I attempt this; the smaller diameter extension fatigues and breaks off.