Where logs are milled around the Irish capital? (5)

I believe the answer is:

sligo

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'where logs are milled around the irish capital?' is the definition.
The definition suggests a singular noun which matches the answer.

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(Other definitions for sligo that I've seen before include "County of NW Eire" , "area by the sea" , "part of Ireland" , "Ir. town by Donegal bay" , "Town in north-west Ireland" .)

I've seen this clue in the Evening Standard.

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