Jasmin Holt, 35, of Leeton, pleaded guilty to supplying an indictable quantity of a prohibited drug when she faced Young Local Court on Tuesday.

According to documents tendered to the court, police uncovered the methylamphetamine - also known as ice - at a local motel on October 27 after being tipped off that drugs were being sold from a room at the premises.

At about 1.25am, police attended an apartment within the motel where they were met by Holt and three other people.

Police asked a man, who claimed to have paid for the room, if they could search the apartment and were granted permission.

Police entered the bedroom where they found a glass pipe - commonly used to smoke the drug ice - hidden under a mattress.

A further search inside the mattress base uncovered a resealable bag with 30.64 grams of ice and $4450 bundled together.

They also found 6.93 grams of ice - made up to what is commonly know as an 8 ball deal - in a chest of drawers.

Holt immediately claimed ownership of the drugs when police asked who owned them.

She was arrested and taken back to Young Police Station where she told a police officer she intended to sell the drugs.

“I just fell across it, I was going to sell it to set myself up,” Holt said.

But in a recorded interview with police she denied she was going to sell the ice.

She said she found the drugs and cash near a playground at Anderson Park and was going to use the cash to set up a new home in Young.

She said the ice was for personal use only and a set of scales, also found at the apartment, was for her to keep tabs on how much of the drugs she was taking.

The total ice seized weighed 37.91 grams, a sample of which produced a purity of 77.5 percent when tested.

Police said the street value of the drugs seized was about $40,000.

Holt was remanded in custody, to face sentencing in the Wagga District Court from March 16.