I did a number of trips in 2004 to the Lake Lyell area. Primarily it was day trips being close to Sydney. The area has a number of challenges ranging from easy to quite hard. It is possible to camp in the area and Lithgow isn’t very far away at all if you require supplies. You can get a camper trailer into the area to set up, however it is best to leave it in one area and do runs without the trailer (some of the tracks aren’t trailer friendly short of having diff locks, mud terrain tyres and a couple of inches of lift).
I’ll let photos tell the story about this area: