That's awesome, I've never messed with magnesium, very cool, very dangerous. That's exactly how i like doing them in materials that i can weld, that or braze welding them shut too, works great with cast iron. The al carb for my welder was cracked from the fuel fitting being over tightened, so i welded that up and chased the threads. In my factory days i did that with steel as a full time job working salvage, they would break taps off in parts and we would have to fix them. They were often helical taps, so we would have to get them out by any means necessary, weld up the area and blend it with a grinder or prep for machining, and then drill and tap it to size and on location. Frustrating nightmare, and then you had to fix weld defects on other parts. Needless to say i got the weld a nut on it trick down pat for the easier ones (anneal the top of the tap before you weld it), and have screamed no at them if they broke off deep below the surface, your nightmare just beginning.
That's a brilliant idea with a plug or better yet sleeve glued in, I'm stealing that one. I think loctite makes a glue now for what traditionally would be a pressed or interference fit (also an option sometimes, so you would drill to whatever size rod you have that would fill it and then glue in a plug. Put the cover on and mark the hole, then drill and tap it. I'm definitely gonna use that in the future, thx man.