Abstract: An apparatus and method are disclosed for the continuous formation of slurry. The apparatus includes a hopper to receive particulate material; one or more transport/mixing assemblies that mix and transport the solid material and a carrier liquid; and a mixing/averaging tank that receives the solid/liquid mixture from the transport/mixing assembly and performs a final mixing and averaging of the mixture to achieve a desired slurry consistency. An auger inside the tank continuously mixes and shears the slurry. The tank has one or more outlet ports to continuously discharge the slurry. The auger may be bi-directional, to direct the slurry towards dual outlets on opposing ends of the tank. Preferably, a reciprocating screen deck is provided to eliminate oversized particulates before the mixture enters the mixing/averaging tank. Carrier liquid is introduced at several points in the process, including into the transport/mixing assemblies, at the screen deck, and into the mixing/averaging tank.