This project is very much alive, am hoping that it will be ready to take to Bathurst in 2017. As for doing a race car Z31 project there are pros and cons to work through but basically for race use it is not a particularly a heavy car and has good aero. It really is a development of the original S30, unlike the Z32 which is a completely new car. A new auto transmission package is planned using the same LS3 engine that has performed so well in the 280ZX, the new auto will be about 30kg lighter and have engine braking which is something that you don't miss until you don't have it.
The two engine stands rotisserie is made so next week she should be flippable, very careful attention will be paid to firstly repairing the usual underbody dings and then looking at what can be beefed up with minimum extra weight to improve handling. Had a close look at a MX5 the other day, boy do they have some nice body stiffening features. There is a reason why those sorts of modern cars handle so well, I'm trying to transfer that knowledge to this project.
Sorry, no pics