NOTE 5. INVESTMENT IN AFFILIATES

12 Months Ended

Nov. 30, 2013

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

NOTE 5. INVESTMENT IN AFFILIATES

	At November 30,
	2013		2012
Donlin Gold LLC, Alaska, USA		1,720	$	4,185
Galore Creek Partnership, British Columbia, Canada		305,735		335,086
		307,455	$	339,271

In July 2012, the Board of Directors approved the commencement of permitting of the Donlin Gold project as contemplated in the NI 43-101 compliant technical report entitled “Donlin Creek Gold Project, Alaska, USA, NI 43-101 Technical Report on Second Updated Feasibility Study” dated effective November 18, 2011.  The Company has not realized any revenue from operations.  The Company will be primarily engaged in development of the Donlin Gold project and exploration and evaluation of the Galore Creek project until the Company commences the production stage at the Donlin Gold project.

Donlin Gold LLC

On December 1, 2007, together with Barrick Gold US Inc., the Company formed Donlin Gold LLC to advance the Donlin Gold project in Alaska. Donlin Gold LLC has a board of four directors, with two nominees selected by each company. All significant decisions related to Donlin Gold LLC require the approval of both companies. The Company has a 50% interest in Donlin Gold LLC.

Changes in the Company’s investment in Donlin Gold LLC are summarized as follows:

	Years ended November 30,
	2013			2012			2011
Balance – beginning of period	$	4,185		$	2,675		$	1,970
Funding		12,155			18,439			22,382
Share of losses		(14,620	)		(16,929	)		(21,677	)
Balance – end of period	$	1,720		$	4,185		$	2,675

The following amounts represent the Company’s 50% share of the assets and liabilities of Donlin Gold LLC.  Donlin Gold LLC has capitalized the initial contribution of the Donlin Creek property with a carrying value of $64,000. The 50% share of Donlin Gold LLC’s assets and liabilities is shown on this basis below. Therefore, the Company’s investment in the Donlin Gold project does not equal 50% of the net assets recorded by Donlin Gold LLC:

	At November 30,
	2013			2012
Current assets: Cash, prepaid expenses and other receivables	$	3,390		$	4,836
Non-current assets: Property and equipment		541			732
Non-current assets: Mineral property		32,692			32,692
Current liabilities: Accounts payable and accrued liabilities		(2,211	)		(1,383	)
Non-current liabilities: Reclamation		(692	)		(692	)
Net assets	$	33,720		$	36,185

Galore Creek Partnership

The Galore Creek Partnership was formed in May 2007. Teck earned its 50% interest in the Galore Creek project upon completion of its funding commitment of C$373,300 in June 2011 (“reconsideration event”). Commencing June 2011, the partners funded the project costs on a 50/50 basis.

Under ASC guidance, upon a reconsideration event, an entity is required to reassess whether an entity is a Variable Interest Entity (VIE) when the holders of the entity lose power to direct the activities that most significantly impact the entity’s economic performance and whether a variable interest holder is a primary beneficiary. The reconsideration event resulted in a loss of the Company’s primary beneficiary status upon Teck completing their earn-in obligations under the partnership agreement. Prior to the completion of the earn-in, if Teck had failed to the meet their obligations, the Company would have had the power to exercise control. Following the reconsideration event, the Company and Teck share joint control of the Partnership. All future costs are funded equally between the partners. The Company determined the fair value of the Partnership at the date of the reconsideration event, deconsolidated the Partnership and commenced equity accounting for its share of the investment.  The fair value represented the net present value at May 31, 2011 of the discounted projected future cash flow of the Galore Creek project assuming gold, copper and silver prices of $1,100 per ounce, $2.66 per pound, and $18.50 per ounce, respectively and a discount rate of 7%. As a result, the Company recognized a gain of $154,173 on deconsolidation of its investment in the Partnership.

	At June 1, 2011
Company’s fair value for 50% of Galore Creek Partnership	$	354,429
Company’s book value for 50% of Galore Creek Partnership		200,256
Gain on deconsolidation	$	154,173

The determination of the estimated fair value of the equity investment in the Partnership required management to make estimates and assumptions of future events.  These estimates and assumptions affect the reported amount of the investment and the reported amount of the gain recognized upon fair valuing the equity investment in the Partnership. Significant estimates include future commodity prices, future foreign exchange rates, various operational assumptions, and recovery rates. Actual results could differ materially from those reported.

Changes in the Company’s investment in the Partnership are summarized as follows:

	Years ended November 30,
	2013			2012			2011
Balance – beginning of period	$	335,086		$	333,380		$	—
Fair value of 50% interest on deconsolidation		—			—			354,429
Funding		6,638			16,303			14,149
Share of losses		(13,352	)		(23,401	)		(17,423	)
Foreign currency translation		(22,637	)		8,804			(17,775	)
Balance – end of period	$	305,735		$	335,086		$	333,380

The following amounts represent the Company’s 50% share of the assets and liabilities of the Partnership. As a result of the gain on deconsolidation, the carrying value of the Company’s 50% interest in the Partnership was higher than 50% of the book value of the Partnership. Therefore, the Company’s investment in the Partnership does not equal 50% of the net assets recorded by the Partnership:

	At November 30,
	2013			2012
Current assets: Cash, prepaid expenses and other receivables	$	377		$	1,516
Non-current assets: Property and equipment		263,797			281,073
Current liabilities: Accounts payable and accrued liabilities		(483	)		(1,245	)
Non-current liabilities: payables and decommissioning liabilities		(8,533	)		(9,087	)
Net assets	$	255,158		$	272,257

Equity loss of affiliates:

	Years ended November 30,
	2013		2012		2011
Donlin Gold LLC:
Mineral property expenditures	$	14,412	$	16,753	$	21,563
Depreciation		208		176		114
		14,620		16,929		21,677
Galore Creek Partnership:
Mineral property expenditures		4,580		11,984		11,526
Care and maintenance expense		2,444		4,952		1,167
Depreciation		6,328		6,465		4,730
		13,352		23,401		17,423
	$	27,972	$	40,330	$	39,100