RH described the process very well, and as you're looking into the action from the front (where the barrel screws in) you'll see the two bolt abutments. The lower left front corner of the top bolt abutment is the one that causes the damage. Blend the sharp corner to a soft round corner and apply some cold bluing or corrosion control oil to the bare metal.

You can also lap the bolt lugs by applying some fine lapping compound to the abutments, install the bolt and work it by opening and closing while pulling back. Some consider this to be un-necessary because the Savage bolt head floats, but I've looked at wear patterns on my well used actions and noticed that the abutments don't wear evenly, so I lap them now. YMMV.