A method for separating and recovering ultrafine particulate solid material from a suspension or slurry of the solid material and a hydrocarbon liquid by precipitation or flocculation of a heavy fraction of the hydrocarbon liquid with an effective amount of a precipitation or flocculation agent such that the precipitated heavy fraction encapsulates the particulate solid material. The method further comprises coking the precipitated heavy fraction and grinding the coked product to an ultrafine size.