Thanks for theso far, right, from the start, l tried putting the key into the barrel, key did not go all the way in, thus unable to turn key or take off stearing lock.
Do l start drilling now???

If ur original key will not go in all the way, l suspect that some of the internal parts will not move aside for the teeth of the key.
Before u drill anything, spray some WD-40 or CRC oil into the key slot to free-up anything. Try tapping firmly on the ignition barrel to cause vibrations to allow the original key to enter.
Finally, do u have a second key that may work better?

Failing all this, the only thing ur should drill is the little pin of the ignition barrel. Do not make any hole in the metal shaft any bigger. u do not want to cause any problems installing ur new ignition.

There also a 7mm ''set screw'' that helps retain the barrel in place. Remove this, find this directly on top of the barrel casing.

Remember, there is a reason why the key will not enter completely. But it recently fit? Try to make the small difference it needs to enter, before u get destructive.
PATIENCE is important when working on a living thing..a car.

ONE DAY LATER: l just went to the breaker to view a 306 ignition barrel. Yes, the little square shaped pin is directly under the barrel, & if u have to cut metal, u r lucky! You need only cut about 1/4 inch until the barrel can slide out. A 1/4 inch drill or angle grinder or hacksaw could suffice.

If you cant get the barrel to turn to position1,it cant be released. So you will need to drill the lock bolts out and replace the whole assembly.hope this helps.