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For making crests, dig around in the ring (7)

Ross

I believe the answer is:

ridging

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'for making crests' is the definition.
I can't tell whether this definition defines the answer.

'dig around in the ring' is the wordplay.
'around' indicates anagramming the letters.
'in the' means one lot of letters goes inside another.
'dig' anagrammed gives 'dgi'.
'dgi' placed into 'ring' is 'RIDGING'.

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