I have a grade 0 made in 1905. the barrels look like Damascus, however the bores are shiny bright steel and appear to be armour steel. The original catalog add states, "damascus steel bored for nitro powder". Can someone explain this to me? is smokeless safe to shoot?

Joe: if the barrels have a crolle pattern, they ARE damascus. You can bring out the pattern somewhat by rubbing a soft cloth with a dab of white vinegar, under the FE where it will not show, then oil the spot.
No. 0 guns were offered with "London Steel" after about 1907 and were so marked on the bottom of the barrels just forward of the flats.

"Mirror" bores in a 115 y/o gun are very suggestive of previous honing, and the gun should not be used, with ANY load, until careful measurements are made of the wall thickness; from breech to muzzle.

Regarding safety please see "Is my shotgun safe to shoot" in the General Information FAQ
https://lcsca.clubexpress.com/content.aspx?page_id=274&club_id=43784