A bit holder that includes a front portion and a shank axially depending fromthe frontportion. The front portion having an axial length that is less than the axiallength of the shank.A combination bit holder and base block that includes the bit holder with thefront portionhaving an axial length that is less than the axial length of the shank. Thebase block includinga mounting portion and a device receiving portion, the device receivingportion including alength that is the same or less than a length of the mounting portion. Thebase block having adevice receiving portion that includes a length shorter than a length of themounting portionadapted to provide increased access to the rear of the bit assembly allowingthe base blocks tobe mounted closer to each other for micro-milling operations. Shortened bitholder shanks arereconfigured from prior art to provide increased holding power between the bitholder shankand base block bore.
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