Abstract: A tool for use with a power drill for removal of rivets in light alloy panels and other structures. A hollow, cylindrical drill cage is mountable to the bottom of a tool body having a reciprocating drive shaft. A drill bit which is mounted on the lower end of the drive shaft extends downwardly through the cage and passes through a guide bushing at the lower end thereof. The guide bushing has an axial bore for receiving and guiding the drill bit, a central socket for receiving and holding the head of the rivet, and a broad annular surface which extends around the socket so as to engage the surrounding material and stabilize the tool and bit perpendicular thereto. The drill cage has port openings formed in the sides thereof for discharge of shavings which are pulled upwardly by operation of the bit, and a channel is also formed across the annular stabilizing surface for discharge of chips and shavings therethrough.