Police carried out covert surveillance before the raids
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Heroin with a street value of £120,000 has been seized by South Wales Police who raided homes in Cardiff and Pontyclun.
Crack cocaine valued at between £5,000 and £7,500 was also found by officers who had been carrying out covert surveillance prior to the search.
A quantity of cash was recovered from the addresses which is being forensically analysed.
Two people have been arrested in connection with the raids.
South Wales Police said the investigation started in April and a period of intensive covert surveillance has been carried out leading to the arrests.
Det Supt Reg Bevan said the raid was part of Operation Tarian.
"The quantities of drugs seized are significant for the region and these arrests form part of our strategy to actively target those individuals who we believe are causing the greatest harm to our communities," he said.
"The investigation is not over and we will continue to investigate those individuals involved in the trafficking of class A drugs and look to utilise every tool available to secure their convictions and strip them of any assets they have gained through their involvement in crime."