What does the cryptic crossword clue "American chases lost sheep in ancient city (7)" mean?

The definition is "city". The wordplay uses an anagram. anagram of SHEEP (synonym="SHEEP") + US (synonym="=American") = EPHESUS; definition: "ancient city" The answer is EPHESUS.

American chases lost sheep in ancient city (7)

Independent Cryptic #11682 | 16 Across | 2024-03-20 flower

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