It appears that the displayed chuck will hold the blank in the tailstock position, while the headstock will use a standard Shopsmith drill chuck, and hold the bit .. (horizontal drilling mode)
Which will work, except, *I* would want more bite on the blank itself .. as in pin-jaws which are around an inch in length to really get a grip, and hold the blank parallel to the chuck (which will be perpendicular to the drill bit, as you would normally desire it to be).
I have a SuperNova, and REALLY love it ... many jaw choices .. I also have a Barracuda and it is very usable, too.
(you might want to really tap this in snugly)
(or get a chuck which attaches firmly to the headstock, and put the drill chuck, via adapter, into the tailstock.)
(oh, and that is a three-jawed chuck. I tend to drill squared blanks .. if you are starting with pre-rounded, then three jaws would work)