The most common and most likely answer to this crossword clue is the 8 letter word TACONITE
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More clues leading to the result TACONITE
Buddy explains!

The straight part
We know that "low grade ore" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case low grade ore = taconite.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does TACONITE mean?
TACONITE noun- A low-grade flint-like iron ore containing 20-30% iron.