Of course it can. Page deallocations are recorded.
From the 2005 BOL:
ms-help://MS.SQLCC.v9/MS.SQLSVR.v9.en/tsqlref9/html/3d544eed-3993-4055-983d-ea334f8c5c58.htm
TRUNCATE TABLE
removes the data by deallocating the data pages used to store the table data and
records only the page deallocations in the transaction log.
There's no guarantee it will work but if done quickly (like, right after the table is truncated as in the sample I supplied) it can actually be done.