It will work absolutely fine. Consider that the major fuel source for metalcasting of all kinds for thousands of years has been wood or charcoal. In a backyard crucible style furnace you can do brass with relative ease, perhaps iron with the right fuel and sufficient air blast. The nice thing about charcoal is that it is fairly self-insulating, so furnace construction is simplified, and the need for highly refractory linings is less. Portland cement based refractories would be absolutely fine for a charcoal furnace. You will still need some type of blower, but it is not as critical to have a high powered one. A hair dryer would be sufficient for a small furnace (one with a cool or no heat setting so it won't burn itself out).
If you wanted to build a furnace that you could switch over to gas or liquid fueled burners, build a tangential-tuyere style furnace and try a woodgas burner. I am experimenting with them myself, and I will have one that will eventually melt iron easily. Google "Dassifier" or check out
www.woodgas.com . I will have to look up the exact link for you. The nice thing with a woodgas burner is that you don't have the crucible surrounded by and supported by coals, and it is easier to manipulate the crucible. You also don't have to open the furnace to add fuel. They are somewhat cantankerous to get going, and may be a little sensitive to the quality of the fuel, but myself and others are working on it. Jammer, another poster here, is experimenting with them also.