Crossword Genius

Fancied I dug up hidden silver (8)

Ross

I believe the answer is:

imagined

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'fancied' is the definition.
(I've seen this in another clue)

I don't understand how the rest of the clue works.

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(Other definitions for imagined that I've seen before include "Created mentally" , "Supposed" , "Visualised" , "Not based on fact, dubious" , "Created in the mind" .)

I've seen this clue in the Sydney Morning Herald.
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