Preheat oven to 300 degrees F. In large bowl combine egg, bread crumbs, mint, 2 or 3 cloves garlic, salt, and pepper. Add ground lamb; mix well. Shape into 32 meatballs; set aside.
For sauce, in medium saucepan bring pomegranate juice to boiling; reduce heat. Simmer, uncovered, 25 minutes or until reduced to about 1/2 cup. Add sugar; stir to dissolve.
Meanwhile, in large skillet brown half the meatballs at a time in hot olive oil, turning to brown evenly. Transfer to a 15x10x1-inch baking pan. Bake 15 to 20 minutes or until an instant-read thermometer registers 160 degrees F. In medium bowl combine yogurt, 1 tablespoon of the chives, and 1 clove garlic. To serve, drizzle meatballs with pomegranate sauce; sprinkle with remaining chives and mint. Serve with seasoned yogurt and pita wedges. Makes 6 to 8 servings.