Yep. That's catastrophic. Probably either the actuator or the actuator arm. It needs to be dissembled and the platter removed. The platter is then placed in HD with operable mechanics and then the data is harvested. It takes some time and needs to be done in a fairly clean environment with some specialty tools. That's where the expense comes from. Again, sorry.
Remember, hard drives are MECHANICAL. Everything that is mechanical has a useful life - they will all eventually fail. Back up. Back up. Back up.