NOTE 5. INVESTMENT IN AFFILIATES

6 Months Ended

May. 31, 2015

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

NOTE 5. INVESTMENT IN AFFILIATES

	At May 31, 2015		At November 30, 2014
Donlin Gold LLC, Alaska, U.S.A	$	1,486	$	1,618
Galore Creek Partnership, British Columbia, Canada		260,606		283,247
	$	262,092	$	284,865

Donlin Gold LLC

On December 1, 2007, together with a subsidiary of Barrick Gold Corporation (“Barrick”), the Company formed a limited liability company (“Donlin Gold LLC”) to advance the Donlin Gold project in Alaska. Donlin Gold LLC has a board of four directors, with two directors selected by Barrick and two directors selected by the Company. All significant decisions related to Donlin Gold LLC require the approval of Barrick and the Company. The Company has a 50% interest in Donlin Gold LLC.

Changes in the Company’s 50% investment in Donlin Gold LLC are summarized as follows:

	Six months ended May 31,
	2015			2014
Balance – beginning of period	$	1,618		$	1,720
Funding		6,018			7,746
Share of losses		(6,150	)		(5,986	)
Balance – end of period	$	1,486		$	3,480

The following amounts represent the Company’s 50% share of the assets and liabilities of Donlin Gold LLC. Donlin Gold LLC has capitalized as Mineral Property the initial contribution of the Donlin Gold property with a carrying value of $64,000 resulting in a higher carrying value of the Mineral Property than the Company.

	At May 31, 2015			At November 30, 2014
Current assets: Cash, prepaid expenses and other receivables	$	2,217		$	2,294
Non-current assets: Property and equipment		317			403
Non-current assets: Mineral property		32,692			32,692
Current liabilities: Accounts payable and accrued liabilities		(1,048	)		(1,079	)
Non-current liabilities: Reclamation obligation		(692	)		(692	)
Net assets	$	33,486		$	33,618

Galore Creek Partnership

The Galore Creek project is owned by the Galore Creek Partnership (“Partnership”), a partnership in which a wholly owned subsidiary of NOVAGOLD and Teck Resources Limited (“Teck”) each own a 50% interest. The Partnership was formed in May 2007. Teck earned its 50% interest in the Partnership upon completion of its funding commitment of C$373,300 in June 2011. Commencing June 2011, the partners funded the project costs on a 50/50 basis. The Partnership prepares its financial statements under IFRS and are presented in Canadian dollars. In accounting for its investment in the Partnership, the Company converts and presents reported amounts in accordance with US GAAP and in U.S. dollars.

Changes in the Company’s 50% investment in the Partnership are summarized as follows:

	Six months ended May 31,
	2015			2014
Balance – beginning of period	$	283,247		$	305,735
Funding		444			1,445
Share of losses		(411	)		(1,250	)
Exploration tax credit		—			(693	)
Foreign currency translation		(22,674	)		(6,259	)
Balance – end of period	$	260,606		$	298,978

As a result of recording the Company’s investment in the Partnership at fair value in June 2011, the carrying value of the Company’s 50% interest in the Partnership is 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. The following amounts represent the Company’s 50% share of the assets and liabilities of the Partnership:

	At May 31, 2015			At November 30, 2014
Current assets: Cash, prepaid expenses and other receivables	$	387		$	386
Non-current assets: Property and equipment		234,610			254,991
Current liabilities: Accounts payable and accrued liabilities		(330	)		(360	)
Non-current liabilities: Payables and reclamation obligation		(7,690	)		(8,268	)
Net assets	$	226,977		$	246,749

Equity losses of affiliates

	Three months ended May 31,				Six months ended May 31,
	2015		2014		2015		2014
Donlin Gold LLC:
Mineral property expenditures	$	3,612	$	3,083	$	6,065	$	5,893
Depreciation		42		48		85		94
		3,654		3,131		6,150		5,987
Galore Creek Partnership:
Mineral property expenditures		12		47		25		328
Care and maintenance expense		273		438		386		922
		285		485		411		1,250
	$	3,939	$	3,616	$	6,561	$	7,237