You can follow the project at ModdB, a release date isn't provided. For legal reasons, the game will require the original version of the game, so if you don't own this you'll need to buy it from Steam or Gog.
XWVM is a mod to the original Star Wars: X-Wing game from Lucas Arts and Totally Games by Larry Holland and Edward Kilham. Our goal is to rebuild the game engine with newer technologies that allow it to run and make use of the latest hardware and improvements in gaming hardware. The mod will require the player to own and have installation of the original Star Wars: X-Wing game, or have the GOG or Steam versions of X-Wing Special Edition (either the 1993 floppy, the 1994 CD, and/or 1998 Windows edition). XWVM neither contains nor distributes any copyrighted material. All game resource files (missions, voiceovers, SFX, iMUSE automaton, etc) are loaded from the player's copy of the original game, or are original creations of our team, where the original resources are considered inadequate for today's standards.A video showing the current state of the mod can be viewed below but the FAQ page points out the final version will look better. What you're seeing below contains a lot of developer art, which is clarified as being art created by a guy who can code but can't draw.
H/T: The Tech Report