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3" groups at 200 yards sounds very good to me.

The only reason a Sharps, or any other rifle, would shoot better than that is because it has a better trigger or better sights -- both of which can be accomplished on your Marlin if you have a desire to spend the money.

One thing that really changed my long range rifle for the better was putting a Hadley (adjustable) eyecup on it. With many different aperture sizes, I can vary the amount of light coming through the sight to accommodate light changes or tired eyes. I would encourage you to get one installed on your marlin. Additionally, and aperture front sight will make a big difference in the sight picture. I like the discs that have an actual hole (aperture) in the center for target shooting. Get a Lyman 17 front sight and play around with the different disks that come with it. You'll have a definite preference.

The size of groups that I shoot vary in direct proportion to the size of the aperture I chose to use. In other words, smaller apertures make for smaller groups. Conditions don't always permit using the smallest aperture, but the Sharps guys have to shoot in the same conditions as do you.

Also, a heavier bullet might return you some increased accuracy.
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