Prospect with gold disappearing in country with canal (6)
I believe the answer is:
panama
'canal' is the definition.
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for panama that I've seen before include "A great canal or a straw hat" , "Great American canal or tropical hat" , "Headgear for a canal" , "Central American state" , "Central American country" .)