Eastern Cape police stumbled upon 762 rounds of live ammunition during an operation in East London.
The ammunition was found hidden in a shallow grave in Kimberley Road in the CBD while members of the police were searching for alleged drug dealers on Friday, spokesperson Captain Hazel Mqala said.
She said no arrests were made.
"Amongst the rounds, a firearm licence was recovered and during a preliminary investigation, the owner was traced, who alleged that several of his firearms and a substantial amount of ammunition was stolen during a house breaking that took place in November 2016," Mqala said.
Police have since recovered one of his firearms in Cambridge.
Mqala added that as the team continued with its operation, two men aged 35 and 39 were arrested in terms of the Immigration Act.