I'm not the best person to ask about this, but whilst it doesn't say no target shooting it's a permit to hunt on public land, so the intention is for hunting.
While setting up some gongs and shooting them from a 1000m can be done safely, when it's in a shared area were other members of the public can be without your knowledge the risk to the public is much higher than firing one or two shots at a deer.
Whilst I'm sure if you exercised common sense you would likely be fine, but I don't believe that if a ranger or someone from DOC took exception to your target shooting saying it doesn't say you can't on the permit would pass as an excuse, when clearly the intention of a hunting permit is for hunting.
Again I'm not someone in the know, but if someone from your local office said its ok then you should be fine. I'd want it in writing though as anyone who has dealt with local government knows ones persons word isn't worth a dam if the next person you talk too doesn't agree.
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