The present study investigates the performance of a new generation mineral with high alumina (Al₂O₃), very low thermal conductivity (K) and high density, which are necessary insulation properties, sandwiched to achieve effective insulation results, in a compound heating resistance furnace at 1600°C. Two heating elements SiC and MoSi₂ are used for long hours with a number of pre-set programmable cycles of operations. Zirconium tiles, mullite tiles, zirconium modules are being used in this experiment. Air, a bad conductor of heat transfer, is also used in a gap of 20 mm between two different tiles to lessen heat transfer from working chamber towards outer ambience by conduction and radiation—combined modes of heat transfer during multiple programmable operations at preset working temperature of 1600°C to achieve desirable results—maximum thermal efficiency with least heat loss from outer surface and to achieve skin temperature as equal to ambience temperature. Also, hot face red bricks are used under the hearth by a new design in this experiment for optimum insulation performances. This study aimed to design a compact furnace that would occupy less space and reduced total weight with better insulation for working temperature 1600°C, when compared with conventional ceramic materials used as insulation material.