Gold found in Michigan island (4)

I believe the answer is:

maui

'island' is the definition.
(I know that Maui is a island)

'gold found in michigan' is the wordplay.
'gold' becomes 'au' (Au is the chemical symbol for gold).
'found in' is an insertion indicator.
'michigan' becomes 'mi' (abbreviation).
'au' going inside 'mi' is 'MAUI'.

(Another definition for maui that I've seen is " Hawaii's second largest island".)

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

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