I think i know what Lurchman was getting at, yes, you can find ore off monsters and as loot... but it cannot be used for the ore required for the keep by the 2 blacksmiths.. the ore you pick up off monsters is simply that ore, used in making armor, weapons, etc... the ore required for the keep has to be found, and mined by the miners you hired, from Old owl well and Port Llast... see my post under the
Commander of the keep for more details...