Have you checked it with a field gauge. I hear a lot of regulars here that say that a Krag is safe even if a no/go gauge is accepted. If you have any dial indicators you can check how much play is still in the bolt with the no/go installed. Not sure how many thousanths of an inch a field gauge is larger than a no/go gauge. A good gunsmith could set a barrel back one turn and line up the sight again. Not every gunsmith is that good.
Some of the regulars here use the CMP to do barrel work, they can tell you how to do that.
Not a gunsmith myself and certainly would not try to do it on a part time basis with the new federal interpretations of ITAR.