A device and method for drying fine particulate. A parallel flow rotary drum dryer is used to dry the particulate material. There is a combustion chamber for the burner, located upstream of the dryer inlet, and the burner flame is limited to the combustion chamber so the fine particulate material does not come into direct contact with the burner flame. The output from the dryer passes through a knock-out box including a baffle system with a plurality of narrow gaps to create a pressure drop to slow down the gas flow and enable the entrained fine mesh dry particulate to drop out through a bottom outlet before the effluent gas is sent to the dust collection/air filtration system.