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Uses last rag and rubs grease on to coat it over in the west (5)

Ross

I believe the answer is:

sligo

I'm a little stuck... Click here to teach me more about this clue!

'it over in the west' is the definition.
The definition suggests a singular noun which matches the answer.

'uses last rag and rubs grease on to coat' is the wordplay.
I cannot really understand how this works, but
'last' could be 'go' (synonyms) and 'go' is found in the answer.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for sligo that I've seen before include "part of Ireland" , "Irish seaport and county" , "Yeat's county" , "area by the sea" , "County of northwest Ireland" .)

I've seen this clue in The Irish Times.
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