Helian,
You can very easily recover the silver from your silver chloride without producing the copious chlorine fumes you will get from a furnace.
The copious white fumes mainly come from molten AgCl. The patents above use a temperature below the melting point of AgCl and, if I remember right, the patentee says that there are no fumes.
I see much merit in your system. You've put a lot of thought into it. I like the nails. I agree with the constant stirring. The nails also enable you to stir well and they're easy to remove. However, I would wonder if you're getting 100% conversion. When you melt, what does your slag look like? Is there a layer in between the slag and the metal?
I can see you getting 100% if the AgCl was fresh and wet. The dry AgCl poses some problems. When AgCl dries it forms crystals. In my experience, if you don't grind it to face powder (I like the blender idea), you don't get complete conversion,
no matter what method you use. As the silver reduces, it forms a crust around unreacted AgCl particles, thus preventing further reaction. This unconverted AgCl is easily lost in the slag and can only be recovered by smelting. Also, in order for all of the AgCl to convert, each AgCl particle must come in intimate contact with the iron.
You can easily test for unconverted AgCl in the Ag powder. It's better to test it while it's still wet:
(1) Dip out about a gram of the Ag powder and put it into a 100ml beaker. Add about 20ml of distilled water and stir well. Allow to settle and pour off only the water. Repeat 5 or 6 times. You
must rinse out all of the Cl-. Hot water may be best. Add the water from a squirt bottle and, when you add it, rinse down the inside of the beaker.
(2) Add a little nitric acid (3 or 4 ml) and some distilled water. When the Ag has completely dissolved, the presence of a white cloud or a settled white powder indicates unconverted AgCl.