The present invention relates to a continuous drum dryer mixer apparatus and method for heating and drying virgin aggregates, as well as recycled asphaltic pavement materials and mixing such materials with liquid asphalt cement and other ingredients to formulate asphalt paving materials. A first cylindrical rotatable drum dryer has a first material input in one end thereof and a material output at the other end thereof. The output is directable at the option of the operator to either a hot elevator for carrying it to an asphalt batch plant or into a second concentric or offset rotating drum mixer. A burner is mounted either at the output end of the first cylindrical drum, or at the output end of the second drum and extends therethrough to the output end of the first cylindrical drum for directing a flame into the first cylindrical drum. A liquid asphalt injection nozzle introduces liquid asphaltic materials into the second cylindrical drum Mixer for mixing with dried aggregates and recycled asphaltic materials. The device also includes a first suction device which cooperates with two annular plates to prevent smoke and fines from passing from the mixing drum to the heating and drying drum. A cowling, fan and connecting pipe are used to recirculate the hot exhaust gases back to the burner.