An apparatus and method for recycling drilling mud contaminated with particulates, consists of channelling a stream of contaminated slurry onto a screen deck, with the partly cleansed liquid entering a mixing tank. Liquid within the tank is continually mixed. An exit conduit removes liquid from the tank on a continuous basis, where it is given an additional purification with a cyclonic separator. The heavier fraction is further screened, with the resulting purified liquid reentering the tank. The lighter fraction exists the cyclonic separator, and a portion of the lighter liquid is withdrawn for use as a substantially cleansed liquid. Another portion of the lighter fraction is re-circulated back into the tank, thus providing multi passes through the system to provide enhanced purification. The cleansed liquid may be directed into a separate mixing apparatus, in which additional slurry-forming powder such as Bentonite is added for forming a new slurry.
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