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Pipe dope is handy on vertical surfaces, doesn't drip off. Oil is best for horizontals. I have run a holesaw through 3/4" plate with a mag drill. I made a dam around the area I was cutting the hole with some silicone caulk. Drilled the pilot hole almost all the way through the plate, then...

Dudes Call your friendly neighborhood commercial electrician. He should have a set of Greenlee punches that go up to 4". Makes nice round holes in sheetmetal a whole lot easier than with a holesaw. The only problem is that the punches only come in certain sizes. You might end up with a holesaw...