[Jeff Higgins]

That looks like a sporterized military Mauser, Tom. As such, the rear sight, even when bottomed out, will have the rifle shooting quite high at normal hunting ranges. The idea was for the rifle to be able to provide hits on man sized targets out to 400-500 yards with no elevation corrections, simply by holding mid-torso. This arrangement works in battle, where all you want is disabling hits, but it is far from suitable on a hunting rifle. You need to get some proper sights, and get them properly zeroed, before even thinking about hunting with this rifle.

That, and I'm sorry, but you will need to learn to shoot it one hell of a lot better than that before you go hunting with it. Your 50 yard target indicates that range is even a bit too far to ethically shoot at live animals with your current skill level, especially considering that target was shot from a rest. Get the sights squared away, spend the next year practicing with that rifle, and be ready to hunt next season. When you can shoot groups less than half that size (yes, with open sights) at 200 yards, you will be ready to go hunting. Not before.