What's the best tool for cutting material

We have found marking it with a spin wheel and cutting with a pancake knife

Can I use this to make moccasins, and/or tan it to use for a drum?

I certainly think so. Moccasins would be a great usage. Bear in mind, you'll need to line it with something, so other material, but they would make perfectlY molded moccasins

Is it thin enough to use it for bookbinding? Bookbinding leather is usually quite thin, thinner than a dime.

It is pretty think leather and soft.

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REEDLeather Hides - Sheep Skins for Arts & Crafts (Burgundy)

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