Evening Martin,
No 12mpg is not clever but feel with a bit of tuning I can improve on that.
The Big block in the 56 got over 18mpg put out nearly 500hp and ran low 12's whilst the 3100 had a mental smalblock that revved the heavens and still gave me over 20mpg on a run.
Think a combination of new build, a few miles to loosen it up, a bit of tuning on the carb (runs a bit rich) and some time with a timing light will reap benefits. Not 100% what is in the engine but it seems to have a cam of some type as well.
will respond to your PM shortly, just off to spend an hour in the freezer (garage) to check the brake light issue.
P.