My Marlin built 1894 CS with a 2.5x scope mounted will do less than 2" at 50 yds with most any .357 load I've tried; and these are groups shot off the porch rail with a folded towel as the only support...the gun is just that good.
It's the best shooting Marlin or Winchester lever action I own. Handloads with Hornady's 158 XTP FN, should do fine for you, backed by 296, 110, or #9 a cpl grains below max loadings. The XTP FN is designed for rifle use and will hold together better than the more common 158 XTP bullet.
With carefully scanned home-cast bullets
(Lyman's 358156 GC, w/AC wheel weight alloy and sized to 0.360"), it'll do the same at 100 yds, and do it for seven rounds with a heated bbl. I use annealed Hornady GC's with this bullet. The annealing seems to give me better accuracy.
It's the bottom one in the pic below, but with a Williams WGRS, IIRC, peep mounted.
HTH's Rod