You have to drill the hole. First drill through a 5/16" through the block, then with a 1/2" drill bit go down 3/8" for a place for seal.
Best to have NEW Drill bits when going at the cast iron.. save you a lot of time and hassle. Dull drill bits and cast iron don't go together.
On motors with steel pans already you can skip the drilling part. Which is good if the motor is in the car because, well I know I shouldn't have to tell anyone, but drilling through the block creates a LOT of shavings.. and probably best to have the oil pan off if your going to drill the block.
Trim tube to fit, top and bottom. If you have a steel pan already you may not have to trim the bottom.
Insert 1 ( or 2 seals if you already have the steel pan and the larger factory hole drilled ) on end of tube and lube seals.
Sometime sliding the seals in first about half way, then tube makes it easier ( This is more true if you drill the smaller hole. Overall depends on the seals you have and the size of the hole.