Yes many on here have swapped in a 5.3 LS engine and add the 4L60 transmission with overdrive and they claim they are getting over 20 mpg. And that is with their tiny little US gallons, EH!
Here is a thread on an installation for you to read.
http://67-72chevytrucks.com/vboard/s...d.php?t=244448'
There is even a special forum right here now for LS swaps.....
http://67-72chevytrucks.com/vboard/f...prune=30&f=206