NOTE 4. INVESTMENTS IN DONLIN GOLD

6 Months Ended

May 31, 2016

Schedule of Investments [Abstract]

NOTE 4. INVESTMENTS IN DONLIN GOLD

The Donlin Gold project is owned and operated by Donlin Gold LLC, a limited liability company in which wholly owned subsidiaries of Barrick Gold Corporation (“Barrick”) and NOVAGOLD each own a 50% interest. 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 both Barrick and the Company.

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

	Three months ended May 31,						Six months ended May 31,
	2016			2015			2016			2015
Balance – beginning of period	$	903		$	1,474		$	1,058		$	1,618
Share of losses:
Mineral property expenditures		(2,466	)		(3,612	)		(4,430	)		(6,065	)
Depreciation		(36	)		(42	)		(75	)		(85	)
		(2,502	)		(3,654	)		(4,505	)		(6,150	)
Funding		2,886			3,666			4,734			6,018
Balance – end of period	$	1,287		$	1,486		$	1,287		$	1,486

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, 2016			At November 30, 2015
Current assets: Cash, prepaid expenses and other receivables	$	1,680		$	1,762
Non-current assets: Property and equipment		156			232
Non-current assets: Mineral property		32,692			32,692
Current liabilities: Accounts payable and accrued liabilities		(549	)		(936	)
Non-current liabilities: Reclamation obligation		(692	)		(692	)
Net assets	$	33,287		$	33,058