my first thought was a loose part.
My second though was you need a stethoscope from harbor frreight to really pinoint where the noise is coming from.
I will put my money on a bad lifter.
5.3 is not in interference engine like a subaru engine or other foreign cars. A timing chain Vs Belt should really last as long as the engine. I had a spark plug get damaged before on an LM7 but not valves to piston..
btw i live in the south and paid too much for a Burb with 120k. I paid 5k but i had to got though my credit union and a local dealer, if i ad cash i would have paid 4k
please check for pending codes, buy borrow a scanner if you dont have one. Electrical gremlins can be fixed but you can get the asking price lowered if you see pending codes.
Currently have an 03 burb 5.3L. I had a older burb with the 5.7 w/o spider injection. I do like the 5.3, ive replaced both types of motors and many other parts on both and find that the 03 is a simple workhorse similar to the 5.7. Only time will tell if the 5.3 will have the same reputation as...
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