Is this a faulty HDD?

I am trying to fix my friend's PC that has the following symptoms: All programs hang up randomly several times a day for anywhere between a few seconds to ten minutes, then everything works fine again for an hour or so. It runs windows 7 64 from a small 32gb SSD, and there is also a 200gb HDD in it divided into five different partitions for reasons neither my friend nor I could explain but what she wanted me to get rid of.

So after data backup I deleted all partitions, created a single new one but when I tried to format it windows said it was unable to complete the operation. Because there were a few larger files I couldn't back up due to read error I suspected bad sectors so tried running checkdisk to mark them. But it said it couldn't handle RAW disk types. SMART report in HD tune says all metrics are ok, the driver is healthy. Error scan in quick mode shows no errors but is unable to complete with quick mode disabled. Instead it hangs for a minute around 5% then all the rest of the sectors turn red and the HDD disappears from explorer and disk manager. I can actually hear the HDD spin down. Sometimes the drive reappears in explorer after seconds, other times a restart is needed. All power saving options are disabled in windows. The power cable is solid, using it daily with another drive.

I understand there are a lot of other things that can cause the symptoms and I haven't even began to provide enough information to explore all the possibilities. My question really is if based on the above can I safely assume and tell my friend that the root of the problems is a faulty HDD and she should throw it away?
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  1. Most likely a bad drive, I'd run the manufactures diagnostics to confirm.
  2. Used WD's diagnostic tool, result and I quote: 'too many bad sectors'. Thanks for the help.
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