Majestic Gold has reported a serious incident at its Denggezhuang Underground Mine (DGZ Mine) in China, leading to the suspension of mining activities.

A worker was fatally injured by falling rocks during risk removal operations at the mine, which is operated by Yantai City Mujin Mining, a subsidiary of Majestic Gold.

Even though “immediate” rescue efforts were made, the worker passed away due to their injuries, the company said in a statement.

Following the incident, authorities from the Shandong Provincial Emergency Management Department and the Shandong Bureau of the State Mine Safety Supervision Administration (EMD & SSA) mandated a halt in production.

They also called for a thorough rectification of the situation and temporarily withheld the mine's relevant licences.

An accident investigation team has also been formed. The team's responsibilities include determining the accident's nature, investigating the on-site management's accountability and assessing the direct economic losses.

A review of the remediation measures by the team will precede any decision to restart operations at the DGZ Mine.

Yantai Mujin is awaiting the Work-Related Injury Adjudication Determination Notice from the Yantai Muping District Human Resources and Social Security Bureau to confirm the final judgement of the accident.

Meanwhile, Majestic Gold has emphasised its commitment to fully cooperate with the EMD & SSA's ongoing investigation and ensuring the implementation of all necessary safety measures.

The company has pledged to address potential hazards and strengthen on-site safety management and supervision.

Majestic Gold's management and its Board of Directors said they are “offering all possible support to those affected during this difficult time”.

British Columbia-headquartered Majestic Gold is a junior gold producer focused on the extraction of gold in China's eastern Shandong Province.

The company operates the Songjiagou Gold Mines, its flagship project, along with the Mujin Gold Project.