Iron/steel isn't usable in the demo really as you saw (I'm actually going to remove steelworking from the demo as you can't reach the required 3 stars). Gold can be used to make magic wands - although I'm gonna change tier 1 wands in the next update to require bronze, as I want to let players get started with magic a little earlier (but tier 2+ will need gold). The red ore is a ruby, which is only useful for magic wands, but will require a perfect-quality bronze pick.