A method and system for providing a magnetic element are described. The method and system include providing a pinned layer, fabricating a metallic spacer layer and oxidizing a portion of the spacer layer in an environment including at least oxygen and a gas inert with respect to the spacer layer to provide an oxide layer. The method and system also include creating a free layer. The oxide layer is between a remaining metallic portion of the spacer layer and the free layer. In one aspect, the system includes a chamber and a gas diffusion apparatus within the chamber. The gas diffusion apparatus includes a plurality of nozzles and defines a plane. The gas exits each of the plurality of nozzles in a cone having an apex angle. The nozzles are directed at a nozzle tilt angle of at least half of the apex angle from the plane and the spacer layer.