

The 6th hole from the left which is drilled out has a cap like all the pin chambers......but under that cap it has a long brass rod which goes through to the end of the barrel and it sits in a cut out on the slug (see pic) to stop you pulling it out....even if all the pins are out.

One thing to make ABSOLUTELY 100% sure of is that the brass retaining rod is completely removed. That will allow you to rotate ANTI CLOCKWISE 1/2 turn, then pull the slug out.
You have to go 1/2 anti clockwise to pull the slug out otherwise any other position will cause the springs + pins to get caught in the recess that the brass rod normally occupies.
The procedure:
1: Drill the 6th pin from the left about 4mm (that will just be the cap)
2: Extract the brass rod....its tricky, but i find wrapping the padlock up in cloth and hitting it on a hard surface works okay...if not, then you may have to drill the hole slightly larger than original right down to the sheer line
3: Once you can rotate the plug anti clockwise you know the rod is free from the case.
4: Rotate the plug 180 degrees anticlockwise from its standard position then pull the slug out.
5: Watch out for the pins & springs!!!
6: Once all the pins & springs are out you can proceed with punching the pin chamber caps right through to the other side.....do this gently as you will probably want to re-use them.
7: Replace the brass rod (which is no doubt totaled from all the drilling) with a nice long grub screw........Its best if you cut it a nice thread with a tap.
Its up to you what you do with the lock once its dismantled........Making a re-pinable lock is a nice touch.....you can substitute the original pin chamber caps for grubs screws so you can always dismantle the lock at your leisure.
Or, you could make a nice cutaway.......half the reason people put off making padlock cutaways is because they don't know where to start taking it apart properly.
Enjoy

P.s These pictures should be good for.......well, forever.......this isn't some 'fly by night' hosting which will take the pics off next week.