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It could work, sure... you'd have to be careful not to take some of the Marines' newer toys, or model them to suit. I'm talking things like the Thunderfire, Stormtalon, Stormraven... all things Iron Warriors wouldn't have access to unless they'd looted them.
Honestly, you've got plenty of options for making a fluffy Iron Warriors list out of the Chaos Codex. Just mech everything up! Warpsmith is an obvious choice, as are Maulerfiends, Forgefiends, Heldrakes, Helbrutes, Predators, Land Raiders, and Havocs. Then your normal Marine troops can take Rhinos to keep up too. That's a heck of a starting roster.
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