I can't help you regarding a book, but I do remember watching the dredge in operation late 40's early 50's, it was quite a noisy operation and we would go for a family drive up that way on a regular basis. The few little dredge buckets that you see around town today are not from the big dredge as they were monsters. The dredge was the largest in the southern hemisphere at the time and was eventually dismantled and sent to Malaysia.
There was also a large water wheel at Wandiligong used for crushing, up from Bright and there is a digging reserve there.
My first school teacher had came from Porpunkah and he his own gold mine up the head waters of the Buckland river somewhere, but I don't know where. He would bring quartz to school and have us use his motar and pestle to smash it up, but I never saw any gold from that effort. He retired in the early 50's and spent most of his time playing around at his mine.
You can find some information via the Web, using a range of different queries.
Rob.