Its a pretty interesting conversation where anyone can come up with some anecdotal evidence to support their argument one way or the other. I think no one would argue with the fact that bullet design and bullet placement trump calibre every time. I have just recently started using a .223 on deer sized game, using the 73gn ELDX and I would have to say that compared to my 6.5 creedmoor using 129 SST projectiles that the internal tissue and organ damage is actually greater with the .223. To me the big minus with the .223 is that there is often no exit and therefor no blood trail, we'd all like to think that our shot deer will drop on the spot but that's not always the case and a deer doesn't have to go very far in rough terrain to die and then disappear. For me at least the .223 is great in more open country where I can pick my shot but in the bush I would go for a heavier calibre every time.
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