The holes are almost certainly used for indexing I.E with this you can stop the lathe at predetermined and even spaces.It allows you with the aid of an overhead cutter to cut flats, gears, etc, etc,with your lathe in effect to mill on the lathe.Let's say you wanted to cut some gears you dont want to have to measure each cut every time with these stops using the indexing pin you can hold the collets steady and make a cut etc etc I am sure you will find a better explanation given than mine but that is the basic idea .making a small pin should be no problem regards Alistair p.s does the lathe have a model number or do you have photo's
Please excuse my typing as I have a form of parkinsons disease