Mineral properties and development costs (Tables)

6 Months Ended

May 31, 2017

Mineral Industries Disclosures [Abstract]

Schedule of Mineral Properties and Development Costs [Table Text Block]

in thousands of dollars

	November 30, 2016		Acquisition costs		May 31, 2017
	$		$		$
Alaska, USA
Ambler (a)		26,586		-		26,586
Bornite (b)		4,000		-		4,000
		30,586		-		30,586

in thousands of dollars

	November 30, 2015		Acquisition costs		November 30, 2016
	$		$		$
Alaska, USA
Ambler (a)		26,586		-		26,586
Bornite (b)		4,000		-		4,000
		30,586				30,586

(a) Ambler

On January 11, 2010, NovaGold Resources Inc. (“NovaGold”), through Alaska Gold Company (“AGC”), at the time a wholly-owned subsidiary, purchased 100% of the Ambler lands in Northwest Alaska, which contains the copper-zinc-lead-gold-silver Arctic Project and other mineralized targets within the volcanogenic massive sulfide belt, through a series of cash and share payments. Total fair value of the consideration was $26.6 million. The vendor retained a 1% net smelter return royalty that the owner of the property can purchase at any time for a one-time payment of $10.0 million.

The Ambler lands were acquired on October 17, 2011 by NovaCopper US through a purchase and sale agreement with AGC. On October 24, 2011, NovaGold transferred its ownership of NovaCopper US to the Company, then a wholly owned subsidiary of NovaGold, which was subsequently spun-out to NovaGold shareholders and publicly listed on April 30, 2012 (“NovaGold Arrangement”).

(b) Bornite

On October 19, 2011, NovaCopper US acquired the exclusive right to explore and the non-exclusive right to access and enter on the Bornite lands, and lands deeded to NANA Regional Corporation, Inc. (“NANA”) through the Alaska Native Claims Settlement Act, located adjacent to the Ambler lands in Northwest Alaska. As consideration, NovaCopper US paid $4 million to acquire the right to explore and develop the combined Upper Kobuk Mineral Projects through an Exploration Agreement and Option to Lease with NANA. Upon a decision to proceed with construction of a mine on the lands, NANA maintains the right to purchase between a 16%-25% ownership interest in the mine or retain a 15% net proceeds royalty which is payable after NovaCopper US has recovered certain historical costs, including capital and cost of capital. Should NANA elect to purchase an ownership interest, consideration will be payable equal to all historical costs incurred on the properties at the elected percentage purchased less $40 million, not to be less than zero. The parties would form a joint venture and be responsible for all future costs, including capital costs of the mine based on their pro-rata share.

NANA would also be granted a net smelter return royalty of between 1% and 2.5% upon the execution of a mining lease or a surface use agreement, the amount of which is determined by the classification of land from which production originates.

Schedule of Mineral Property Expenses [Table Text Block]

In thousands of dollars

	Three months		Three months		Six months		Six months
	ended May		ended May		ended May		ended May
	31, 2017		31, 2016		31, 2017		31, 2016
	$		$		$		$
Alaska, USA
Community		78		67		134		122
Drilling		90		-		90		-
Engineering		154		46		423		219
Environmental		59		15		59		23
Geochemistry and geophysics		5		1		5		13
Land and permitting		348		111		452		209
Project support		287		67		334		106
Wages and benefits		276		150		439		298
Mineral property expense		1,297		457		1,936		990