That's slightly bigger than the cheapo I have and I'd say it would do 16mm but not on a production basis. Thing about these I find is that I would have mine set up on a med speed which covers 3-8mm ok. To do the 16mm you would have to lower the speed by changing the belts. This is a PITA and if you're only doing the odd 16mm hole it's even a bigger pain.
Sneaking up on it does sound like a plan
Plenty of other machines out there too. I'll have a look later.