Jay Christopher Duck , 32, and Saba Kairouz, 23, were formally refused bail after being charged with supplying ecstasy and crystal methamphetamine.

Both were charged on Tuesday after Lake Illawarra detectives conducted a surveillance operation between August and December. It included more than 1000 tapped phone calls and text messages.

Arrested at a Princes Hwy service station at Albion Park Rail, the two were allegedly found with 57g of crystal methamphetamine, 123g of ecstasy tablets and more than $33,000 in cash.

A search of Duck's home in Terralong St, Kiama was said to have yielded a further $12,000 cash, 165g of crystal methamphetamine, a Luger semi-automatic pistol and 12-gauge shotgun ammunition.

Duck was charged with three counts of supplying an indictable quantity of prohibited drugs, two counts of dealing with the proceeds of crime and one count each of possessing an unauthorised pistol, not keeping a firearm safely, possessing ammunition without holding a licence and possession of an unauthorised pistol.

Kairouz, of Melanie St, Bankstown, was charged with four counts of supplying a prohibited drug, two of dealing in the proceeds of crime and one count each of assaulting a police officer and resisting arrest.

In court, police prosecutor Sergeant Coby Pearson described Duck as a prominent figure in the drug network in the Illawarra.

"He poses a great threat to the community," she said.

Duck's lawyer David Ryan said Duck intended to defend the charges. "Nothing is conceded in relation to those facts," he said.

Magistrate Robert Walker said the prosecution had a strong case, considering the intercepted telephone conversations.

"If that case is proven, you will have a custodial sentence," he said. "My main aim is to protect the community against people who deal in drugs. I'm going to have to refuse bail."

Kairouz did not seek bail.

Police facts tendered in court claimed that in the course of recorded phone conversations between the co-accused, they discussed selling 1200 to 2000 ecstasy tablets for $12 each. Kairouz allegedly said he had access to up to 30,000 tablets.

A diary found in Duck's home showed names and monetary amounts which police said would be consistent with the major supply of drugs. Police estimated Duck made about $118,000 in four months from selling prohibited drugs.

Both men are due back in court on December 19.