Tim,
Nebulae makes a good point, this maybe destined for a marginal out come. However, I know you have already put some work into this and you do seem determined. Also, thanks to both you and Nebulae for the kind words. It is appreciated, and I will do my best here to work through this with you. Nice post too Tim, you got a whole model of what you are working on going.
Just a couple things to address on the current model, first the pivot point needs to move slightly. As a basic rule I would set the pivot back at least 3/8" from the front edge of the handle. We need room for the washers on either side of the blade and we want it to be strong here. Additionally, the blade edge could (does not have to) start just in front of the handle. Also, I think it looks better to center your pivot more. Bottom line the pivot point should be centered slightly more and moved more slightly toward the center of the handle. The blade could be shifted back into the handle more too.
On your model and on the real knife the liners are going to need to cover the entire interior of the knife for strength, safety and to support the wood which will likely crack over time if not supported from behind. Notice the knives in the pic below. Handles need to be able to take a real beating.
Not sure to be happy or sad about the blade steel...However if this is the blade you are set on using it is what it is.
As you mentioned get a list started for the materials and tools needed. I would suggest you go with a Titanium liner at 0.060 to 0.080 thick. Here is a start of a List:
Liner material
Pivot
Stop
Thumb stud
Stand-off or spacer material
Detent ball
Screws...
Additionally, we are going to need some a couple bits(we want new or very sharp good ones, cobalt preferably, no messing with old bits here), a reamer (for our pivot to keep the blade play down, more to come). Counter sink bits for the screws we are mounting with. Start looking at those supply places at parts and thinking what you want this to look like. I think with the size of handle we may want to consider hiding the pivot, stop and stand-off/spacer screws and mount the handle scales with two or three separate mounting screws. Check out the forum for ideas.
Just to be clear here is a picture showing a knife with stand-offs (yellow handle of one of mine) and a couple knives with spacers, black handled ones. The black material is Micarta which makes a nice spacer (G10 is good too). This will have to be sized perfectly to maintain even spacing for the blade to pivot in.
There are also a couple of different pivots and a pair of spacers on the black micarta for comparison.
We are going to need access to a few tools, at a minimum the drill press you menitioned and also, a stationary grinder(please post pic) measuring calipers, tap handles, or better yet one that mounts in the drill press or similar stationary set up and taps. Let me know what you have access to. Honestly, you are going to need to spend a little money here to make a decent folder, bits are cheap but counter sinks, reamers, titanium and such I bet you will be into this $100-$150 depending on exactly how you choose to do it.
Still in...So, 1) start a list and check out suppliers and other makers for ideas; 2) Post a pic of current blade (still curious); 3) work on the model pivot and post a pic. 4) Pic of stationary sander/grinder and availability of tapping tools and calipers.
Rock on!