If the molds came with the gun originally, look at them. They will tell you what the gun shoots. I also would say it's a bullet gun.
That rifle looks similar to the one that Taylor posted photos of earlier this year.
I think they were for bullets.
Ned Robert's book shows a lot of bullet guns with that type of paper patch.
I’ll not understand why paper patches bulleted traditionals are never used today. Many seem to think in terms of roundball or nothing. Not so during the 19th.