To form a spin valve device, start by forming a gap layer. Form a buffer layer with a layer of refractory material on the buffer layer. Form patterned underlayers including a magnetic material for providing trackwidth and longitudinal bias on the buffer layer comprising either a lower antiferromagnetic layer stacked with a ferromagnetic layer or a Cr layer stacked with a permanent magnetic layer. Form an inwardly tapered depression in the patterned underlayers down to the buffer layer by either ion milling through a mask or a stencil lift off technique. Form layers covering the patterned underlayers that cover the inwardly tapered depression. Form free, pinned, spacer and antiferromagnetic layers. Form conductors either on a surface of the antiferromagnetic layer aside from the depression or between the buffer layer and the patterned underlayers.