Mc Lernen.
I can't endorse the steel on steel application on the barrel lug; the factory system is the same. Steel on steel and most Handis will positively respond to the o-ring isolation with improved accuracy.
The system I use is forearm uplift on both the forearm tip and the back at the hinge piece with isolated pressure at the barrel lug and expansion foam or silicon between the tip and the hinge piece.
This may sound strange but I have 7 single shot rifles, namely two Handi's, one Winchester 85 low wall and three Ruger #1's and one Ruger #3 that all have the same forearm treatment.
All 7 rifles responded to this forearm treatment and all shoot less than 3/4". The 25-06 Ruger #1 shoots under a 1/4".