UPDATE 10PM: The Ascot man has been remanded in custody and will face the Bendigo Magistrates Court on Friday, after being charged with drug trafficking, possession of firearms and possessing proceeds of crime. 

UPDATE 6.15PM: The Ascot man will appear before a bail justice tonight in an out of court hearing at Bendigo Police Station.

Police will oppose bail.

UPDATE 6PM: Police have charged a 34-year-old Ascot man with drug trafficking, possession of firearms and possessing proceeds of crime. 

The charges come after raids at a business and a home in Arrawalli Avenue in Ascot where police found a loaded gun, drugs, ammunition and large amounts of cash.

Police are seeking to submit a remand application to keep the man in custody rather than release him until his appearance in court. 

Sergeant Mick Peckham said police believed remand was appropriate given the "serious nature of the charges". 

Police found a semi-automatic pistol, ammunition, methamphetamine, ecstasy pills, a large amount of cash believed to be the proceeds of crime and an imitation hand gun during searches of the man's home and a Bendigo business . 

Sergeant Peckham said the man was known to police and today's raids were the result of extensive investigations. 

"It's fair to say we would regard this as a successful operation," Sergeant Peckham said.

"Society expects us to act against drugs and we are determined to disrupt any persons involved in trafficking, manufacturing, possession or use of drugs.

"Any disruption to the traffic and manufacturing and possession of drugs that we can do is certainly a win. That's our aim."

Sergeant Peckham said there was no suggestion the loaded semi-automatic pistol was being used "in a threatening manner" but that it was concerning that police found such an item. 

"I’m keen to stress the fact that yes, we found a loaded firearm but no, it wasn’t being used in a manner that should concern people."

He said the raids were not part of the Dob In A Dealer campaign run by CrimeStoppers and Victoria Police but encouraged people to continue to use that service. 

"All information is greatly appreciated and all information is acted upon," he said.

UPDATE 4PM: A man, 34, has been placed under arrest in connection with two simultaneous raids in Bendigo's north. 

Police found a semi-automatic pistol, a large quantity of ammunition, methamphetamine, ecstasy pills, a large amount of cash believed to be the proceeds of crime and an imitation hand gun from raids at a home and business in Ascot. 

The operation was a joint effort between police from the Central Victorian Response unit, the Australian Federal Police, the Critical Incident Response Team and other Bendigo police. 

Sergeant Mick Peckham said the man under arrest was being interviewed in relation to the seized items.

"It's a result of an extensive investigation," Sergeant Peckham. 

EARLIER: BENDIGO police and the Australian Federal Police are conducting a drug raid at a property in Ascot, in the city's north.

Sergeant Mick Peckham said police were performing a Drugs, Poisons and Controlled Substances Act search warrant at a home in Arrawalli Avenue.

The raid is still underway so a full update will follow soon.