Joseph Calabro and Ivan Novakovic front Picton Local Court after property raid at Hill Top

Police have uncovered a drug lab as well as a gun stash and $115,000 cash secreted within log hollows during a property raid on the outskirts of Sydney. Watch footage of the raid.

Two men have been released on bail after police uncovered a drug lab as well as a gun stash and $115,000 cash secreted within log hollows during a property raid on the outskirts of Sydney.

In November, investigators from the State Crime Command’s Raptor Squad commenced investigations into a criminal syndicate allegedly involved in firearm related offences and the supply of prohibited drugs.

As part of their inquiries, police executed a search warrant at a unit on Percy Street at Bankstown, locating and seizing two pistols, ammunition, and $87,960 cash.

A 24-year-old man – who is an associate of the Rebels outlaw motorcycle gang (OMCG) – was arrested at the unit and charged over his alleged involvement in the syndicate and remains before the courts.

During a search, police located an indoor hydroponic setup containing more than 50 cannabis plants.

After further investigations, Raptor Squad officers executed a search warrant at a property at Hill Top in the Southern Highlands from about 6.30am on Tuesday.

During a search, investigators located an indoor hydroponic setup containing more than 50 cannabis plants, and equipment consistent with the cultivation and supply of cannabis.

Additionally, police located and seized three rifles, more than $115,000 cash secreted within log hollows on the property, 386 rounds of ammunition, steroids, further amounts of dried cannabis, and methylamphetamine.

Three men - aged 41, 42 and 44 - were arrested and taken to Southern Highlands Police Station.

Joseph Calabro, 42, was charged with cultivating a prohibited plant more than commercial quantity-cannabis, diverting or using electricity for generating etc system without authority, three counts of possessing unregistered firearm, and knowingly deal with proceeds of crime.

Raptor Squad officers executed a search warrant at a property at Hill Top.

He was also charged with three counts of possessing prohibited drug after police allegedly found cannabis, methamphetamine and testosterone.

Mr Calabro fronted Picton Local Court via video link on Wednesday but did not apply for bail, his matter was adjourned to Moss Vale Local Court on August 9.

Ivan Novakovic, 41, was charged with two counts of possessing prohibited drug, possessing an unregistered firearm, and concealing a serious indictable offence.

He fronted Picton Local Court via video link on Wednesday where his lawyer Stephen Maitz applied for bail.

About $115,000 in cash was seized.

The police prosecutor opposed the application and said there were not enough conditions to “mitigate the risk” to the community based on the severity of the charges.

She said that police were dealing with “an elaborate criminal enterprise” and while Mr Novakovic was not charged with that, he was charged with concealing a serious offence.

Mr Maitz said his client was a self-employed builder who had been staying with some friends at the Top Hill address for a couple of weeks.

He said that Mr Novakovic was not involved in the enterprise and had been cooperative with police.

Magistrate Mark Douglass granted Mr Novakovic bail on the conditions that he refrain from contacting the two other men charged and any witnesses, and that he report twice a week to police.

386 rounds of ammunition was uncovered.

A 44-year-old man was charged with cultivating a prohibited plant more than commercial quantity - cannabis, three counts of possessing an unregistered firearm, possessing ammunition without holding licence, and not keeping a firearm safely.

He was granted conditional bail to appear at Moss Vale Local Court on August 9.