Regarding the mines – yes.
The Elves won't give you heroes.
Red – Demons. You need to get a quest to destroy the Inferno Castle, or something like that. I saw somewhere that the Sphinx gives the quest, but I don't remember what you need to do to get it.
And there's also an Inferno Castle at the end of the map. You'll have to fight a demon there to complete the mission.
Another question about the Elves and Orcish Hunters: it seems that they both give quests. I took a quest from the Elves, went to the Orcs, and they also give me quests, either to kill the Druids. After that, a window appears asking if you want to attack the Orcs or cancel. One of the quests will definitely fail, or is there a way to complete both?
I also don't understand about the spy, Axel. I searched the whole city, and no one said anything. Only the Centaur mentioned that Axel told me some nonsense about a horseshoe. Anyway, I talked to everyone and returned to Axel, but he had no reaction