I've seen it used to fit handgun parts together. There is a lengthy series of videos on youtube of someone building a 2011. Dude brushes this stuff on something like the barrel and slide. He then moves the parts against each other and can easily spot the high points to attack with the file. Rinse, repeat like 20,000 times.
Skip forward to about 9 minutes...
https://youtu.be/6ZzjJPmSsPQ





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