That is good knife steel. It's probably 15N20 steel, which is basicly 1075 with 2% nickel. Heat treating is simple: heat to nonmagnetic and immediately quench in warm light oil, temper at 375 to 400 degrees. It's tough as can be, because of the nickel. Not the best for edge holding, but OK, and really easy to sharpen. I've probably got 20 ft. of that stuff. I use it for kitchen knives and small skinners. I've never seen any 1/8" thick. Most of mine is just under 1/16". I'd love to find some around here that thick, for short machete type blades.
Todd