hi, just perusing...
a buddy of mine did something like this w/ good results. He got this "CLS" compound from somebody on Ebay, got himself a graphite annode or two, a stainless cathode plate (from a junked muffler), ran the battery charger, and he got the system to work. It did use lots of juice, though, and lots of HCl just to keep the liquor clear. Still, I smelted down a nice PM blob for him. He did all of this using buckets and an old battery charger.
An observation or two: you can clearly do something like this on a small scale w/o heavy capital investment, though I'd worry about the electric (and HCl) bill. Graphite annodes, too, are fickle: sometimes they don't last long (we used thick 1-1/2" gouging rods until the store tripled the price on us). Another thing, the hotter the better (say, in the 150F range), but this produces a noticable toxic smell in a residential neighborhood
My guess, but i'm not sure, is that 'CLS' is actually Ferric-Ammonium Sulphate, which in acid, along with carbon from the annode, creates CN 'on demand', so to speak. I'm assuming that for practial purposes, though, treating the effluent, you've pretty much got a cyanide solution on your hands, so caution is in order.