Police raided a Lonsdale Street unit in Redan on November 19 where they allegedly located a large quantity of ecstasy in zip lock bags, deal bags containing methamphetamine, GHB, cash and a notebook containing people's names.

Police nominal informant Senior Constable Michelle Cosgrave told the Ballarat Magistrates Court on Wednesday other drugs located at the unit included cannabis buds, seeds and seedlings, while more than $20,000 worth of stolen tools, guitars and stereo systems was found.

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She said Paul Milenkovic and other associates, who did not live at the address, were in the house.

Senior Constable Cosgrave said $5000 cash, in $1000 bundles, was located in his pocket.

He was arrested but was not interviewed because he was "extremely" drug affected.

In arguing for bail, Milenkovic's lawyer said his client was temporarily living at the Redan rental unit and the case would be delayed due to forensic testing.

Magistrate Michelle Mykytowycz refused Milenkovic's bail application because he had not shown compelling reasons.

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