Note 5 - Investment in Donlin Gold

12 Months Ended

Nov. 30, 2020

Donlin Gold [Member]

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 5 – INVESTMENT 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 NOVAGOLD and Barrick 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 at least a majority of the Donlin Gold LLC board members.

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

	Years ended November 30,
	2020			2019			2018
Balance – beginning of period	$	1,840		$	1,209		$	1,100
Share of losses:
Mineral property expenditures		(14,339	)		(10,434	)		(8,785	)
Depreciation		(163	)		(57	)		(13	)
		(14,502	)		(10,491	)		(8,798	)
Funding		15,276			11,122			8,907
Balance – end of period	$	2,614		$	1,840		$	1,209

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

	As of November 30,
	2020			2019
Current assets: Cash, prepaid expenses, and other receivables	$	2,654		$	3,115
Non-current assets: Right-of-use assets, property and equipment		1,339			462
Non-current assets: Mineral property		32,615			32,692
Current liabilities: Accounts payable, accrued liabilities and lease obligations		(1,271	)		(1,737	)
Non-current liabilities: Reclamation and lease obligations		(723	)		(692	)
Net assets	$	34,614		$	33,840