I spent one evening playing, and within the first month, I captured both Demon cities (defeated the red hero) and cleared the outpost blocking the path upwards (I really enjoyed this battle; here's the replay).
After capturing the Demon cities, the problem with ore disappeared because these cities have marketplaces, and resources can be easily exchanged.
We'll see what happens next; by the way, I was developing not the main hero, but a hired Sanitarian.
