I'm going to guess that is a reloading tool for ammunition. I googled "vintage bullet primer drilling tool" and one of the hits was about converting Berdan primers to Boxer primers and the process involves drilling a hole in the center, between the two smaller original holes.
I did not see a tool like yours, but there may not be many of them out there. Plus, the hunt has just begun! Here's a photo showing a Berden, a Boxer and a Converted shell.

and another
Happy hunting.
Tom