Will it work - Yes.
Will it work as you expect - No!
The brightness will be even lower, in fact several times lower. The fundamental problem is the LEDs are not lit up for long enough. If you pass a steady current through an LED it will be as bright as expected. If you pass the same current through the same LED but only pulse it on for 1/8 of the time and off for 7/8 of the time, visually it will appear much dimmer. That is why your original circuit is not bright enough. When you expand it to 8 matrix modules, the time each LED is on drops to 1/64 of the time and 63/64 of the time it is off. The brightness therefore will be approximately (perception of vision is not linear) 8 times lower than before.
Look at it this way: to get flicker free multiplexing, most systems use around 500Hz scan rate, that means it takes 2mS to go from activating the LEDs in the first column to activating the ones in the last column. You have 64 columns so each one will only be active for 2/64mS = 3.1mS. To see the approximate difference in brightness, run an LED at 20mA continuously then drop the current to 0.3mA, that will be about the same difference in brightness you would see in a 64 output multiplexer.
Brian.