An improved aqueous-based extraction method for the separation and recovery of ultra-fine mineral particles. The process operates within the pseudophase region of the conventional aqueous biphasic extraction system where a low-molecular-weight, water soluble polymer alone is used in combination with a salt and operates within the pseudo-biphase regime of the conventional aqueous biphasic extraction system. A combination of low molecular weight, mutually immiscible polymers are used with or without a salt. This method is especially suited for the purification of clays that are useful as rheological control agents and for the preparation of nanocomposites.