Yes,
The Product I'm talking about is Permatex 518 Gasket Eliminator ( GM part number 1052943 Gasket Maker). I use the product between the cap and the block on the parting surfaces, not the side seal groove. Don't need a ton, just enough to fill any gaps or voids that might exist between the cap and block. The article says to use RTV in this location.
This product is commonly used for sealing transmission and transfer case halves. It eliminates the need for gaskets where the two surfaces are highly machined. Works great. Give it a try.