Crossword Genius

Prospect with gold disappearing in country with canal (6)

Ross

I believe the answer is:

panama

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'canal' is the definition.

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

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(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" .)

I've seen this clue in The Times.
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