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Hope that helps!!!
In short, dying in the mine is a hassle: You will lose mines progress, gold, and a few items from your bag; all items on your person has the possibility of being lost as a result of dying outside a handful exceptions (though farming/foraging/mining tools may be returned on the next day if lost as stated in the quote, and so losing tools may be considered lucky due to the slightly mitigated penalty if you happen to be carrying a lot of good items. But nevertheless, the penalty of dying in the mine is indeed significant).
It's generally preferred that you just restart the day via reloading if you die in the mine, unless there is a very strong reason to choose otherwise (getting a super sweet loot in the mine that persisted after being revived which you don't want to lose from reloading the day). After all, with how costly dying in the mine comes, one often feels that simply repeating the day is less of a step-back.