I wouldn’t touch the front sight yet. Look at it closely, it should be staked from when it was calibrated at the factory. Don't even think about moving that sight until you know where you are hitting.
I am with the crowd that suggests moving closer and trying some different ammo. I would try it at 25m with some Prvi Partizan 173 gr. SP and see what it does. Try a center hold too.
I have a 1935 Brazilian Mauser that I just recently fired for the first time with the 173 gr. Prvi Partizan SP ammo. I have been informed that the military loading at the time called for a 139 gr. bullet with a muzzle velocity of 2950 fps. However, nobody loads it that hot anymore, so I opted to try the 173 gr. loading of Prvi Partizan as it parallels the original Spanish military loading quite closely.
Here is the rife:
The 25m range (I measured it carefully with a hipchain and compass):
Here is my first shot at 25m. It is approximately 2” higher than my point of aim, but dead on.
Here is my final 5 shot group. It measure ¾”, but I knew at the time I’d screwed up the outermost shot by squirming around. I’m confident this rifle could shoot a ragged hole at 25m.
Essentially, it is dead on in regards to windage from when it was set at the factory in Oberndorf back in 1937. I expected it to shoot a little higher if the sights were calibrated for a 139 gr. bullet at 2950 fps. I also wasn’t shooting it at 100m either, so I don't know yet how much difference there will be in point of impact at that range.
BTW, that's a nice looking rifle you have!
